New home closings increased year-over-year in May in the Odessa, TX market, and the increase was greater than April 2016. New home closings moved from 7 a year earlier to 26 after the figure moved from 20 in April 2015 to 26 in April 2016.

A total of 276 new homes were sold during the 12 months that ended in May, up from 257 for the year that ended in April.

New home closings were 26 of the 205 total closings, up on a percentage basis from 7 of 165 a year earlier. Closings of new and existing homes increased year-over-year in May following a drop in April year-over-year.

Pricing and Mortgage Trends

The average per-unit price of new homes was $213,461, compared with $239,854 last year. This was on the heels of a 7.2% lift in April year-over-year.

The average mortgage size moved to $198,822, down from last year's $216,416. In April 2016, average mortgage size on newly sold homes saw a 6.8% rise year-over-year from a year earlier.

Other Market Trends

There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.

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. Foreclosures and REO closings, taken together, made up 20.7% of existing closings, lower than 21.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 11.2% in May from 12.7% a year earlier and REO closings moved from 8.9% of existing home closings in May 2015 to 9.5% in May 2016.

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