In the Lubbock, TX market, new home closings dropped year-over-year in May, and the percentage drop was steeper than April 2016, giving suggestion the market may be worsening. Closings sank 63.4% from a year earlier to 15. This came after a 45.7% decline year-over-year in April.
A total of 219 new homes were sold during the 12 months that ended in May, down from 245 for the year that ended in April.
New home closings made up 2.4% of overall housing closings. This is a decline 6.4% of closings a year earlier. After falling in April from a year earlier, closings of new and existing homes stayed steady in May.
Pricing and Mortgage Trends
The average price of new homes dropped by 8.4% year-over-year to $245,980 per unit in May. This decline compares to a 2.1% boost in April year-over-year.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. Average mortgage size fell by 5.5% from a year earlier, settling at $215,614 in May. Average mortgage size rose 5.0% in April 2016 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. The share of new home closings belonging to single-family homes grew from 87.8% in May 2015 to all of closings in May 2016. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 12.2% of closings.
The average unit size of newly sold homes went from 2,260 square feet in May 2015 to 2,252 square feet in May 2016. In April, the average size of new homes sold went from 2,566 square feet a year earlier to 2,492 square feet. In April 2016, the average size of newly sold homes sank 2.9% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 9.5% of existing home closings, below 11.6% a year earlier. The percentage of existing home closings involving foreclosures stayed at 4.4% of closings in May from a year earlier while REO closings as a percentage of existing home closings fell to 5.2% from 7.2% a year earlier.