In the El Paso, TX market in April, new home closings dropped year-over-year, and the percentage drop, which was steeper than March 2016, gave hints that the market may be worsening. New home closings saw a fall of 88.9% from the year earlier to 21. This came after a 86.6% fall 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 down from the a year earlier when new home closings accounted for 19.4% of total closings. Following a year-over-year decline in March, closings of new and existing homes also slid year-over-year in April.
Pricing and Mortgage Trends
From April 2015 to April 2016, the average price of newly sold homes went from $176,321 to $174,777. This was on the heels of a 20.4% gain in March year-over-year.
In April 2016, average mortgage size on new homes went from $166,653 in April 2015 to $168,015 in April 2016. Average mortgage size gained 11.6% in March 2016 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings climbed from 98.9% of new closings in April 2015 to all of closings in April 2016. Conversely, the share of new home closings belonging to attached units declined to no part of closings from 1.1% of closings.
The average unit size of newly sold homes sank 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 fall from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 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.