New home closings dropped year-over-year in July in the Killeen, TX market, shifting downward off a gain in June 2016. There was a 34.0% drop in new home closings from a year earlier. This came on the heels of a 11.8% climb year-over-year in June.

A total of 1,465 new homes were sold during the 12 months that ended in July, down from 1,519 for the year that ended in June.

Out of all housing closings, new home closings made up 15.0%. This is down from the 19.9% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes fell year-over-year in July.

Pricing and Mortgage Trends

The average price of new homes was $221,968 per unit in July, up 8.5%from a year earlier. This hike is better than the 4.5% surge in June year-over-year.

For newly sold homes, the average mortgage size increased year-over-year along with new home prices. The average mortgage size saw a 6.7% gain year-over-year to $214,459 in July. Average mortgage size rose 2.0% in June 2016 from a year earlier.

Other Market Trends

There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 99.4% of new home closings to all of closings while attached units have gone from 0.6% of closings to no part of closings.

For all new homes sold, the average unit size sank 9.5% year-over-year to 1,988 square feet in July 2016. This drop was opposite the price rise, a pattern also seen in June 2016 when the average size of newly sold homes fell 3.2% to 2,140 square feet. The average size of newly sold homes moved from 2,210 square feet in June 2015 to 2,140 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. Together, foreclosures plus REO closings represented 20.7% of existing home closings, down from 29.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.4% in July from 15.3% a year earlier while REO closings as a percentage of existing home closings sank to 12.3% from 14.5% a year earlier.

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