New home closings grew year-over-year in February in the Fort Worth, TX market, and there were signs that the market may be gaining momentum as the percentage boost proved better than January 2016. New home closings saw a boost of 24.4% from the year earlier to 1,879. This came after a 17.4% boost year-over-year in January.
A total of 23,143 new homes were sold during the 12 months that ended in February, up from 22,775 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 17.1%. This is better than the 15.6% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes also climbed year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in February to $334,660 per unit, a rise of 1.3%. This hike is smaller than the 4.0% rise in January year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. The average mortgage size rose to $287,342 in February, marking a 1.1% bump compared with a year earlier. In January 2016, average mortgage size climbed 4.7% from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 96.8% of new home closings to 96.5% of closings while attached units have gone from 3.2% of closings to 3.5% of closings.
The average unit size of newly sold homes rose 6.1% year-over-year to 3,079 square feet in February 2016. An increase was also seen in January 2016 when the average size of new homes sold climbed 8.5% to 3,168 square feet. In January, the average size of new homes sold went from 2,921 square feet a year earlier to 3,168 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 14.7% of existing home closings, down from 17.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.9% in February from 8.5% a year earlier while REO closings as a percentage of existing home closings sank to 7.8% from 8.8% a year earlier.