Closings of new homes in the Houston, TX market fell year-over-year in July, a move downward following a hike in June 2015. This year's new home closings slumped from last year by 9.5%, reaching 1,715. The came on the heels of a move from 2,243 in June 2014 to 1,895 in June 2015.
A total of 22,965 new homes were sold during the 12 months that ended in July, down from 23,145 for the year that ended in June.
Out of all housing closings, new home closings made up 14.8%. A year earlier, new home closings represented 14.9% of total closings. For new and existing homes, closings declined in July after also declining in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes jumped 5.1% year-over-year to $315,334 per unit. This lift is smaller than the 9.7% rise in June year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. In July 2015, there was a 6.6% rise in the average mortgage size, reaching $272,523. In June 2015, average mortgage size grew 9.5% 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 97.8% of new home closings to 98.1% of closings while attached units have gone from 2.2% of closings to 1.9% of closings.
The average unit size of newly sold homes went from 3,072 square feet in July 2014 to 3,077 square feet in July 2015. The average size of newly sold homes moved from 3,004 square feet in June 2014 to 3,330 square feet in June 2015. In June 2015, the average size of newly sold homes increased 10.9% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 10.0% of closings, below 13.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.2% in July from 7.0% a year earlier while REO closings as a percentage of existing home closings slid to 5.8% from 6.9% a year earlier.