Closings of new homes slid year-over-year in April in the El Paso, TX market, and the percentage drop was steeper than March 2016, suggesting the market may be worsening. There was a 88.9% fall in new home closings from a year earlier. This followed a 86.6% decline year-over-year in March.
A total of 914 new homes were sold during the 12 months that ended in April, down from 1,083 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 4.0%. This is a fall 19.4% of closings a year earlier. Following a year-over-year decline in March, closings of new and existing homes also sank year-over-year in April.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $174,777 in April 2016 from $176,321 in April 2015. This came after a 20.4% boost in March year-over-year.
In April 2016, average mortgage size on newly sold homes moved from $166,653 to $168,015 from April 2015. In March 2016, average mortgage size on newly sold homes saw a 11.6% hike year-over-year 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 jumped from 98.9% in April 2015 to all of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings slid to no part of closings from 1.1% of closings.
For all new homes sold, the average unit size dropped 5.2% year-over-year to 1,739 square feet in April 2016. The average size of newly sold homes moved from 1,799 square feet in March 2015 to 1,923 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 23.6% of existing home closings, below 29.4% a year earlier. The percentage of existing home closings involving foreclosures went from 13.0% in April 2015 to 13.6% in April 2016 and REO closings as a percentage of existing home closings sank to 10.0% from 16.3% a year earlier.