In the Riverside, CA market, new home closings grew year-over-year in April, but the market seemed to be signaling at evening out with a percentage hike less pronounced than March 2016. New home closings saw a 10.6% rise from a year earlier to 512. This was after the housing market saw a 22.1% rise 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 represented 9.3%. This is better than the 6.9% of closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes declined year-over-year in April.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 2.2% year-over-year in April to $453,072 per unit. This boost is smaller than the 5.7% hike in March year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. The average mortgage size rose to $358,200 in April, marking a 4.5% gain compared with a year earlier. In March 2016, average mortgage size on newly sold homes saw a 7.0% rise year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased 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 dropped to 92.6% of closings from 96.3% of closings.
The average unit size of newly sold homes went from 2,709 square feet in April 2015 to 2,699 square feet in April 2016. The average size of newly sold homes moved from 2,715 square feet in March 2015 to 2,734 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 14.0% of existing home closings, down from 18.1% a year earlier. The percentage of existing home closings involving foreclosures fell 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.