Closings of new homes in the San Antonio, TX market sank year-over-year in January, and there were signs of worsening market conditions as the percentage fall was steeper than December 2015. Closings slid 2.9% from a year earlier to 470. This was after the housing market saw a 1.0% drop year-over-year in December.
A total of 8,728 new homes were sold during the 12 months that ended in January, down from 8,742 for the year that ended in December.
Closings of new homes represented 16.2% of total closings, consistent with last year's figures. For new and existing homes, closings declined in January after also declining in December year-over-year.
Pricing and Mortgage Trends
In January, the average price of newly sold homes jumped year-over-year to $280,466 per unit, a 7.2% hike. This bump is smaller than the 11.8% rise in December year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In January 2016, average mortgage size jumped 8.5% from a year earlier to $258,436. In December 2015, average mortgage size grew 11.3% 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 98.8% of new home closings to 99.4% of closings while attached units have gone from 1.2% of closings to 0.6% of closings.
For all new homes sold, the average unit size gained 16.4% year-over-year to 2,807 square feet in January 2016. An increase was also seen in December 2015 when the average size of new homes sold rose 21.0% to 3,016 square feet. In December, the average size of new homes sold went from 2,492 square feet a year earlier to 3,016 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 18.5% of existing closings, lower than 23.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.0% in January from 11.7% a year earlier while REO closings as a percentage of existing home closings slid to 8.5% from 11.3% a year earlier.