In the Lubbock, TX market, closings of new homes fell year-over-year in December, but with a percentage drop not as steep as November 2015, there are signs that the market may be leveling out. There was a 51.5% drop in new home closings from a year earlier. This came on the heels of a 62.5% drop year-over-year in November.
A total of 323 new homes were sold during the 12 months that ended in December, down from 340 for the year that ended in November.
As a percentage of overall housing closings, new home closings represented 3.3%. This is a drop 6.5% of closings a year earlier. After rising year-over-year in November, closings of new and existing homes sank year-over-year in December.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 30.9% year-over-year in December to $321,311 per unit. This hike is smaller than the 37.7% gain in November year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. The average mortgage size saw a 22.8% surge year-over-year to $262,488 in December. In November 2015, average mortgage size rose 32.9% from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 84.8% of new closings in December 2014 to all of closings in December 2015. At the same time, the share of new home closings belonging to attached units dropped to no part of closings from 15.2% of closings.
The average unit size of newly sold homes increased 35.3% year-over-year to 2,894 square feet in December 2015. The average size of newly sold homes moved from 2,104 square feet in November 2014 to 3,166 square feet in November 2015. An increase in both the average size and price of newly sold homes was also seen in November 2015 when the average size climbed 50.5% to 3,166 square feet.
Foreclosures and real estate owned (REO) closings increased in December from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 14.9% of existing home closings, above 13.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.4% in December from 10.5% a year earlier while REO closings as a percentage of existing home closings grew to 7.4% from 2.5%.