In April, there was an increase in closings of new homes in the Riverside, CA market year-over-year, but the market seemed to be signaling at evening out with a percentage lift less pronounced than March 2016. New home closings saw a boost of 10.6% from the year earlier to 512. This came on the heels of a 22.1% jump year-over-year in March.
A total of 7,291 new homes were sold during the 12 months that ended in April, up from 7,242 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 9.3%. This is an increase on a percentage basis, as new home closings were 6.9% of total closings a year ago. After rising year-over-year in March, closings of new and existing homes dropped year-over-year in April.
Pricing and Mortgage Trends
In April, there was a 2.2% rise year-over-year in the average price of newly sold homes, reaching $453,072 per unit. This bump is smaller than the 5.7% lift in March year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. The average mortgage size rose to $358,200 in April, marking a 4.5% lift compared with a year earlier. Average mortgage size climbed 7.0% in March 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units jumped from 3.7% of closings in April 2015 to 7.4% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 92.6% of closings from 96.3% of closings.
There was a move in the average unit size of newly sold homes from 2,709 square feet in April 2015 to 2,699 square feet in April 2016. In March, the average size of new homes sold went from 2,715 square feet a year earlier to 2,734 square feet.
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. Out of all existing home closings, foreclosures combined with REO closings represented 14.0% of closings, below 18.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.9% in April from 8.3% a year earlier while REO closings as a percentage of existing home closings declined to 8.1% from 9.7% a year earlier.