New home closings declined year-over-year in July in the Waco, TX market, and the market seemed to be worsening in light of the percentage fall steeper than June 2016. New home closings saw a fall of 48.4% from the year earlier to 16. This came on the heels of a 20.6% decline year-over-year in June.
A total of 259 new homes were sold during the 12 months that ended in July, down from 274 for the year that ended in June.
New home closings accounted for 3.7% of overall housing closings. This is down from the a year earlier when new home closings accounted for 6.0% of total closings. Following a year-over-year rise in June, closings of new and existing homes dropped year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 19.8% in July to $226,491 per unit. This gain is better than the 18.2% hike in June year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In July 2016, the average mortgage size on newly sold homes saw a 12.0% hike from a year earlier. Average mortgage size jumped 10.0% in June 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size slid 37.3% year-over-year to 1,241 square feet in July 2016. For newly sold homes, an average size fall contrasting with an average price boost was also seen in June 2016 when the average size of newly sold homes declined 18.7% to 1,766 square feet. The average size of newly sold homes moved from 2,173 square feet in June 2015 to 1,766 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 12.4% of existing home closings, below 18.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.8% in July from 9.2% a year earlier while REO closings as a percentage of existing home closings slid to 7.6% from 9.2% a year earlier.