In the Hanford, CA market, new home closings increased year-over-year in November, but the increase was less than October 2015. New home closings moved from 21 a year earlier to 22 after the figure moved from 14 in October 2014 to 27 in October 2015.
A total of 267 new homes were sold during the 12 months that ended in November, up from 266 for the year that ended in October.
New home closings accounted for 21.0% of overall housing closings. This is down from the 22.1% of closings a year earlier. For new and existing homes, closings rose year-over-year in November after also increasing in October year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes dropped 1.9% year-over-year in November to $234,323 per unit. This decline compares to a 3.9% gain in October year-over-year.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. It sank to $215,224 in November, a 9.6% decline. Average mortgage size on new homes went from $225,868 in October 2014 to $262,616 in October 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in November 2015. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size sank 13.5% year-over-year to 1,575 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to increase in November from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings represented 31.3% of existing home closings, above 31.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 12.0% in November from 13.5% a year earlier while REO closings as a percentage of existing home closings grew to 19.3% from 17.6%.