In the McAllen, TX market in November, closings of new homes slid year-over-year, but compared with October 2015, the percentage drop was less steep, hinting the market may be strengthening. Closings fell 24.6% from a year earlier to 43. This was after the housing market saw a 27.9% fall year-over-year in October.
A total of 595 new homes were sold during the 12 months that ended in November, down from 609 for the year that ended in October.
Out of all housing closings, new home closings represented 8.1%. This is down from the a year earlier when new home closings accounted for 9.4% of total closings. Closings of new and existing homes fell year-over-year in November after also falling in October year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 9.4% surge year-over-year in November to $172,848 per unit. This rise compares to a 10.6% drop in October from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In November 2015, the average mortgage size on newly sold homes saw a 14.1% lift from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 8.5% fall from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes gained from 98.2% in November 2014 to all of closings in November 2015. Meanwhile, attached units as a percentage of all new home closings declined to no part of closings from 1.8% of closings.
For all new homes sold, the average unit size fell 12.9% year-over-year to 1,574 square feet in November 2015. In October, the average size of new homes sold went from 1,947 square feet a year earlier to 1,364 square feet.
Foreclosures and real estate owned (REO) closings fell in November from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings made up 30.5% of existing home closings, below 32.1% a year earlier. The percentage of existing home closings involving foreclosures went from 16.7% in November 2014 to 15.8% in November 2015 and REO closings moved from 15.4% of existing home closings in November 2014 to 14.6% in November 2015.