There was an increase in closings of new homes in the Visalia, CA market in July year-over-year, shifting up after a decline in June 2016. There was a 5.6% hike in new home closings from a year earlier. This came on the heels of a 7.3% decline year-over-year in June.
A total of 905 new homes were sold during the 12 months that ended in July, up from 900 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 16.5% of overall housing closings. A year earlier, new home closings accounted for 16.2% of total closings. Closings of new and existing homes increased year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, the average price of newly sold homes rose 1.8% year-over-year to $239,956 per unit. This surge is smaller than the 19.2% hike in June year-over-year.
The average mortgage size on newly sold homes increased year-over-year along with the average price of new homes. In July 2016, there was a 2.0% bump in the average mortgage size, reaching $228,304. In June 2016, average mortgage size on newly sold homes saw a 13.5% boost 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 July 2016. 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 slid 10.8% year-over-year to 1,496 square feet in July 2016. For newly sold homes, an average size decline contrasting with an average price surge was also seen in June 2016 when the average size of newly sold homes declined 14.7% to 1,776 square feet. In June, the average size of new homes sold went from 2,083 square feet a year earlier to 1,776 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 18.1% of closings, below 24.2% a year earlier. The percentage of existing home closings involving foreclosures went from 9.5% in July 2015 to 8.6% in July 2016 and REO closings as a percentage of existing home closings sank to 9.5% from 14.7% a year earlier.