In June, there was a fall year-over-year in new home closings in the Houston, TX market, moving south after a rise in May 2016. Closings declined 30.4% from a year earlier to 1,691. This came after a 8.3% hike year-over-year in May.
A total of 24,996 new homes were sold during the 12 months that ended in June, down from 25,736 for the year that ended in May.
As a percentage of overall housing closings, new home closings made up 15.7%. This is down from the 19.1% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
Average value of new homes sold in June was $325,755 per unit, down 1.4% from a year earlier. This drop is a drop off from the 3.6% decline in May from a year earlier.
In June 2016, average mortgage size on newly sold homes moved from $282,849 to $280,704 from June 2015. Average mortgage size dropped 3.1% in May 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 97.6% of new home closings to 97.2% of closings while attached units have gone from 2.4% of closings to 2.8% of closings.
For all new homes sold, the average unit size sank 10.2% year-over-year to 2,818 square feet in June 2016. A decrease in both the average size and price of newly sold homes was also seen in May 2016 when the average size jumped 5.0% to 2,892 square feet. The average size of newly sold homes moved from 3,045 square feet in May 2015 to 2,892 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 9.0% of existing home closings, below 10.9% a year earlier. The percentage of existing home closings involving foreclosures went from 4.2% in June 2015 to 4.0% in June 2016 and REO closings as a percentage of existing home closings slid to 5.0% from 6.6% a year earlier.