New home closings slid year-over-year in July in the McAllen, TX market, but the market seemed to be hinting at improvement with a percentage drop less steep than in June 2016. There was a 32.6% drop in new home closings from a year earlier. This was after the housing market saw a 38.4% drop year-over-year in June.
A total of 524 new homes were sold during the 12 months that ended in July, down from 539 for the year that ended in June.
Of 446 total closings, 31 were of new homes. This is better than the 5.9% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes slid year-over-year in July.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 20.0% bump year-over-year as it grew to $197,805 per unit. This lift is smaller than the 33.6% surge in June year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. In July 2016, average mortgage size increased 20.5% from a year earlier to $182,384. In June 2016, average mortgage size on newly sold homes saw a 29.9% lift year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 95.7% in July 2015 to 96.8% of closings in July 2016. Meanwhile, attached units as a percentage of all new home closings sank to 3.2% of closings from 4.3% of closings.
There was a move in the average unit size of newly sold homes from 1,783 square feet in July 2015 to 1,790 square feet in July 2016. In June 2016, the average size of newly sold homes jumped 53.9% from the year earlier. In June, the average size of new homes sold went from 1,746 square feet a year earlier to 2,687 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 18.8% of existing closings, lower than 22.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 9.6% in July from 10.8% a year earlier while REO closings as a percentage of existing home closings sank to 9.2% from 11.9% a year earlier.