The McAllen, TX market saw a rise in new home closings in May year-over-year, and the percentage bump was sharper than April 2016, hinting that the market may be strengthening. New home closings saw a jump of 11.6% from the year earlier to 48. This came on the heels of a 2.1% boost year-over-year in April.
A total of 572 new homes were sold during the 12 months that ended in May, up from 567 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 7.8% of overall housing closings. As a part of the whole, new home closings were 7.5% a year earlier. For new and existing homes, closings jumped year-over-year in May after also increasing in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $177,751 per unit in May, up 7.3%from a year earlier. This hike is higher than the 3.2% rise in April year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. Average mortgage size rose 7.3% to $163,742 in May from a year earlier. Average mortgage size increased 1.5% in April 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes declined 21.5% year-over-year to 1,437 square feet in May 2016. The average size of newly sold homes moved from 1,955 square feet in April 2015 to 1,957 square feet in April 2016.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 23.6% of existing home closings, higher than 23.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.5% in May from 10.9% a year earlier while REO closings as a percentage of existing home closings slid to 10.2% from 12.5% a year earlier.