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McAllen, TX - Freshest New Home Sales Numbers Give Hints Market Drop is Deepening

Posted on: May 07, 2012 09:27:17 AM

In the McAllen, TX market in February, new home sales slid year-over-year, and the market seemed to be worsening in light of the percentage fall more severe than January 2012. New home sales saw a drop of 33.3% from the year earlier to 68 after sales sank 12.1% in January from the year earlier.

A total of 881 new homes were sold during the 12 months that ended in February, down from 915 for the year that ended in January.

New home sales accounted for 7.3% of overall housing sales, down from the 13.6% of sales a year earlier. For new and existing homes, sales increased year-over-year in February after also increasing in January year-over-year.

Pricing and Mortgage Trends

The average per-unit price of new homes rose in February to $144,796, up by 5.1% from a year earlier. This is a turnaround from the 12.1% decline in January from a year earlier.

For newly sold homes, the average mortgage size increased year-over-year along with new home prices. In February 2012, there was a 4.1% rise in the average mortgage size, reaching $124,500. In January 2012, average mortgage size on newly sold homes saw a 12.5% fall from a year earlier. For newly sold homes, the percentage of sale price being financed moved to 86.0% from a year earlier figure of 86.8%. It went from 89.8% in January 2011 to 89.4% in January 2012.

Other Market Trends

The percentage of new home sales belonging to single-family homes has risen from last year while the portion of new home sales belonging to attached units has dropped. Single-family home sales jumped from 98.0% of new sales in February 2011 to all of sales in February 2012. Meanwhile, attached units as a percentage of all new home sales declined to no part of sales from 2.0% of sales.

For all new homes sold, the average unit size rose more than twofold year-over-year to 3,990 square feet in February 2012. This surge was somewhat steeper than the price rise, which was also seen in January 2012 when the average size of new homes sold grew 48.9% to 1,057 square feet from a year earlier.

Foreclosures and real estate owned (REO) sales remained a drag on the market. Out of all existing home sales, foreclosures combined with REO sales made up 46.9% of sales. In February 2011, they represented 40.6%. The percentage of existing home sales involving foreclosures rose to 23.3% in February from 17.8% a year earlier and REO sales moved from 22.8% of existing home sales in February 2011 to 23.5% in February 2012.

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