In the Houston, TX market, closings of new homes fell year-over-year in November, but the percentage fall was not as steep as October 2015, suggesting market improvement. New home closings saw a decline of 16.6% from the year earlier to 1,822. This came after a 17.3% decline year-over-year in October.
A total of 25,009 new homes were sold during the 12 months that ended in November, down from 25,371 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 21.3% of overall housing closings. A year ago, new home closings accounted for 22.3%. Closings of new and existing homes dropped year-over-year in November after also falling in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in November to $312,327 per unit, a rise of 4.8%. This lift is smaller than the 5.3% rise in October year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. In November 2015, the average mortgage size was $269,874, up 5.8% from a year earlier. Average mortgage size increased 6.5% in October 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 November 2015. Single-family home closings have represented 97.5% of new home closings while attached unit closings have made up 2.5% of closings.
The average unit size of newly sold homes jumped 7.9% year-over-year to 3,044 square feet in November 2015. In October, the average size of new homes sold went from 2,823 square feet a year earlier to 3,125 square feet. An increase was also seen in October 2015 when the average size of new homes sold climbed 10.7% to 3,125 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 14.8% of existing home closings, below 19.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.1% in November from 8.3% a year earlier while REO closings as a percentage of existing home closings declined to 7.7% from 11.0% a year earlier.