In the McAllen, TX market in April, new home closings fell year-over-year, but with a percentage decline not as steep as March 2016, there are hints that the market may be evening out. New home closings saw a 23.4% fall from a year earlier to 36. This was after the housing market saw a 25.0% drop year-over-year in March.
A total of 551 new homes were sold during the 12 months that ended in April, down from 562 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 5.4%. This is down from the a year earlier when new home closings made up 7.4% of total closings. Following a drop in March year-over-year, closings of new and existing homes increased year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in April to $188,794 per unit, a rise of 2.8%. This hike is smaller than the 2.8% lift in March year-over-year.
Average mortgage size on new homes went from $174,278 in April 2015 to $175,335 in April 2016. In March 2016, average mortgage size gained 2.0% 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. Single-family home closings jumped from 97.9% of new closings in April 2015 to all of closings in April 2016. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 2.1% of closings.
There was a 28.5% fall year-over-year in the average unit size of newly sold homes to 1,397 square feet in April 2016. The average size of newly sold homes moved from 1,865 square feet in March 2015 to 2,186 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 23.3% of existing home closings, down from 35.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 12.4% in April from 15.4% a year earlier while REO closings as a percentage of existing home closings fell to 10.9% from 20.2% a year earlier.