Closings of new homes in the Midland, TX market slid year-over-year in September, but the decline was less than the year-over-year decline in August. New home closings moved from 57 a year earlier to 15 after the figure moved from 60 in August 2014 to 10 in August 2015.
A total of 495 new homes were sold during the 12 months that ended in September, down from 537 for the year that ended in August.
Out of all housing closings, new home closings represented 5.8%. This is a drop 16.9% of closings a year earlier. Closings of new and existing homes fell year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 12.4% hike year-over-year in September to $346,341 per unit. This rise follows a move from $318,534 per unit to $316,859 from August 2014 to August 2015.
Average mortgage size on new homes rose year-over-year along with new home prices. In September 2015, the average mortgage size on newly sold homes saw a 10.1% gain from a year earlier. Average mortgage size on new homes went from $270,087 in August 2014 to $335,215 in August 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes grew 15.2% year-over-year to 2,562 square feet in September 2015. In August, the average size of new homes sold went from 2,282 square feet a year earlier to 1,827 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 6.9% of existing home closings, down from 8.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.1% in September from 5.3% a year earlier and REO closings moved from 3.2% of existing home closings in September 2014 to 2.9% in September 2015.