There was an increase in new home closings in the Visalia, CA market in September year-over-year, and the market seemed to be hinting at strengthening with a percentage gain more robust than August 2015. New home closings saw a 66.7% rise from a year earlier to 100. This came on the heels of a 22.8% jump year-over-year in August.
A total of 862 new homes were sold during the 12 months that ended in September, up from 822 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 17.5%. This marks a rise from 13.2% of total closings a year earlier. Following a decline in August year-over-year, closings of new and existing homes rose year-over-year in September.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 17.8% in September to $259,064 per unit. This boost is an improvement over the 5.2% lift in August year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. Average mortgage size climbed 6.1% to $235,182 in September from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 2.1% surge year-over-year from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes sank 2.3% year-over-year to 2,012 square feet in September 2015. For newly sold homes, an average size fall contrasting with an average price gain was also seen in August 2015 when the average size of newly sold homes declined 3.6% to 1,912 square feet. In August, the average size of new homes sold went from 1,984 square feet a year earlier to 1,912 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in September from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, made up 31.5% of existing home closings, up from 23.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 22.6% in September from 7.8% a year earlier while REO closings as a percentage of existing home closings dropped to 8.9% from 15.7% a year earlier.