Closings of new homes in the Lubbock, TX market declined year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 32 a year earlier to 18 after the figure moved from 33 in January 2015 to 9 in January 2016.
A total of 295 new homes were sold during the 12 months that ended in February, down from 309 for the year that ended in January.
Out of all housing closings, new home closings represented 3.8%. This is a drop 6.5% of closings a year earlier. For new and existing homes, closings slid in February after also declining in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year in February to $262,461 per unit, a rise of 21.0%. This hike compares to a 24.5% fall in January from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In February 2016, the average mortgage size was $228,764, up 23.3% from a year earlier. Average mortgage size on new homes went from $232,212 in January 2015 to $188,432 in January 2016.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes jumped from 90.6% in February 2015 to all of closings in February 2016. Conversely, the share of new home closings belonging to attached units fell to no part of closings from 9.4% of closings.
There was a 55.2% bump year-over-year in the average unit size of newly sold homes to 3,200 square feet in February 2016. The average size of newly sold homes moved from 2,125 square feet in January 2015 to 1,648 square feet in January 2016.
Foreclosures and real estate owned (REO) closings rose in February from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings made up 12.9% of existing home closings, up from 12.2% a year earlier. The percentage of existing home closings involving foreclosures went from 5.7% in February 2015 to 6.2% in February 2016 and REO closings moved from 6.5% of existing home closings in February 2015 to 6.7% in February 2016.