In the McAllen, TX market in January, closings of new homes dropped year-over-year, a move downward following a lift in December 2015. New home closings saw a drop of 23.5% from the year earlier to 39. This came after a 12.0% climb year-over-year in December.
A total of 590 new homes were sold during the 12 months that ended in January, down from 602 for the year that ended in December.
New home closings represented 8.0% of overall housing closings. As a part of the whole, new home closings were 8.3% a year earlier. After remaining steady in December from a year earlier, closings of new and existing homes sank year-over-year in January.
Pricing and Mortgage Trends
In January, the average price of newly sold homes grew 6.1% year-over-year to $184,974 per unit. This boost is smaller than the 18.5% bump in December year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. Average mortgage size gained 8.4% to $173,370 in January from a year earlier. Average mortgage size jumped 18.1% in December 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes grew from 98.0% in January 2015 to all of closings in January 2016. Conversely, the share of new home closings belonging to attached units sank to no part of closings from 2.0% of closings.
There was a 7.1% boost year-over-year in the average unit size of newly sold homes to 1,694 square feet in January 2016. The average size of newly sold homes moved from 1,832 square feet in December 2014 to 1,832 square feet in December 2015.
Foreclosures and real estate owned (REO) closings declined in January from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings represented 29.8% of closings, below 32.0% a year earlier. The percentage of existing home closings involving foreclosures rose to 18.7% in January from 16.7% a year earlier while REO closings as a percentage of existing home closings declined to 11.1% from 15.3% a year earlier.