There was a rise in closings of new homes in the Waco, TX market in September year-over-year, and with a more robust gain than August 2015, there are signals the market may be strengthening. New home closings saw a 36.4% rise from a year earlier to 30. This was after the housing market saw a 31.8% climb year-over-year in August.
A total of 335 new homes were sold during the 12 months that ended in September, up from 327 for the year that ended in August.
Out of all housing closings, new home closings represented 7.1%. This is better than the 5.5% of closings a year earlier. After dropping in August from a year earlier, closings of new and existing homes increased year-over-year in September.
Pricing and Mortgage Trends
The average value for new homes sold in September 2015 was $176,562, a move from $177,411 a year earlier. This was on the heels of a 3.8% hike in August year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year in contrast to new home prices. The average mortgage size saw a 1.2% lift year-over-year to $160,467 in September. In August 2015, average mortgage size on newly sold homes saw a 5.0% bump 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 September 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size jumped 10.2% year-over-year to 2,101 square feet in September 2015. In August, the average size of new homes sold went from 1,877 square feet a year earlier to 2,140 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 19.8% of existing closings, lower than 21.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 12.2% in September from 13.7% a year earlier and REO closings moved from 7.4% of existing home closings in September 2014 to 7.6% in September 2015.