Closings of new homes slid year-over-year in September in the Lubbock, TX market, but the percentage fall was not as steep as August 2015, giving suggestion that the market may be leveling out. Closings dropped 48.5% from a year earlier to 17. This followed a 52.3% drop year-over-year in August.
A total of 381 new homes were sold during the 12 months that ended in September, down from 397 for the year that ended in August.
As a percentage of overall housing closings, new home closings accounted for 3.3%. This is down from the a year earlier when new home closings represented 6.7% of total closings. Following a decline in August year-over-year, closings of new and existing homes increased year-over-year in September.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 37.3% boost year-over-year in September to $342,000 per unit. This gain is higher than the 12.5% bump in August year-over-year.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. The average mortgage size saw a 46.0% bump year-over-year to $308,697 in September. In August 2015, average mortgage size jumped 13.2% 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 grew from 97.0% in September 2014 to all of closings in September 2015. At the same time, the share of new home closings belonging to attached units fell to no part of closings from 3.0% of closings.
The average unit size of newly sold homes increased 39.6% year-over-year to 3,097 square feet in September 2015. An increase was also seen in August 2015 when the average size of new homes sold grew 24.2% to 2,731 square feet. The average size of newly sold homes moved from 2,198 square feet in August 2014 to 2,731 square feet in August 2015.
Foreclosures and real estate owned (REO) closings rose in September from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 13.0% of existing home closings, higher than 11.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.1% in September from 5.3% a year earlier while REO closings as a percentage of existing home closings slid to 4.9% from 5.9% a year earlier.