In June, there was a fall year-over-year in new home closings in the McAllen, TX market, moving south after remaining stable in May from the year earlier. New home closings declined by 38.4% from last year to 45. Closings were level in May from the year earlier.
A total of 539 new homes were sold during the 12 months that ended in June, down from 567 for the year that ended in May.
Out of all housing closings, new home closings represented 6.2%. This is a drop 9.9% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 30.9% in June to $220,382 per unit. This bump is an improvement over the 17.9% rise in May year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. In June 2016, average mortgage size rose 26.8% from a year earlier to $196,255. In May 2016, average mortgage size on newly sold homes saw a 18.0% gain year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings gained from no part of all closings in June 2015 to 6.7% of closings in June 2016. Conversely, the share belonging to single-family homes dropped to 93.3% of closings from all of closings.
For all new homes sold, the average unit size climbed 35.6% year-over-year to 2,367 square feet in June 2016. The average size of newly sold homes moved from 1,830 square feet in May 2015 to 1,962 square feet in May 2016. An increase was also seen in May 2016 when the average size of new homes sold jumped 7.2% to 1,962 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in June from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, made up 26.8% of existing home closings, higher than 23.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 16.3% in June from 11.3% a year earlier while REO closings as a percentage of existing home closings fell to 10.5% from 12.0% a year earlier.