In the Sherman, TX market, closings of new homes grew year-over-year in May, rebounding from a year-over-year decline in April 2016. New home closings moved from 7 a year earlier to 17 after the figure moved from 18 in April 2015 to 10 in April 2016.
A total of 158 new homes were sold during the 12 months that ended in May, up from 148 for the year that ended in April.
New home closings were 17 of the 405 total closings, up on a percentage basis from 7 of 269 a year earlier. Following a year-over-year increase in April, closings of new and existing homes also grew year-over-year in May.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $193,395, down from last year's $234,793. This was on the heels of a 20.7% decline in April from a year earlier.
The average mortgage size moved to $177,802, down from last year's $202,353. Average mortgage size on new homes went from $208,426 in April 2015 to $157,975 in April 2016.
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 fall from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 9.3% of existing home closings, down from 11.8% a year earlier. The percentage of existing home closings involving foreclosures went from 3.4% in May 2015 to 3.1% in May 2016 and REO closings as a percentage of existing home closings dropped to 6.2% from 8.4% a year earlier.