In the Lubbock, TX market in August, closings of new homes fell year-over-year, and with a percentage drop steeper than July 2015, there were signs the market may be worsening. There was a 54.8% fall in new home closings from a year earlier. This came on the heels of a 54.1% drop year-over-year in July.
A total of 336 new homes were sold during the 12 months that ended in August, down from 359 for the year that ended in July.
New home closings represented 3.0% of overall housing closings. This is a fall 6.3% of closings a year earlier. After rising year-over-year in July, closings of new and existing homes sank year-over-year in August.
Pricing and Mortgage Trends
Average price of newly sold homes had a 15.7% surge year-over-year to $269,931 per unit in August. This boost is smaller than the 27.6% bump in July year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. In August 2015, there was a 17.1% surge in the average mortgage size, reaching $235,692. Average mortgage size climbed 25.2% in July 2015 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 August 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes grew 22.7% year-over-year to 2,731 square feet in August 2015. An increase was also seen in July 2015 when the average size of new homes sold jumped 19.4% to 2,769 square feet. In July, the average size of new homes sold went from 2,320 square feet a year earlier to 2,769 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 8.6% of existing home closings, below 11.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.1% in August from 6.0% a year earlier while REO closings as a percentage of existing home closings slid to 4.4% from 5.7% a year earlier.