Closings of new homes in the El Centro, CA market jumped year-over-year in June, but the increase was less than May 2016. New home closings moved from 15 a year earlier to 22 after the figure moved from 9 in May 2015 to 14 in May 2016.
A total of 144 new homes were sold during the 12 months that ended in June, up from 137 for the year that ended in May.
Out of all housing closings, new home closings accounted for 13.1%. This is a boost from 9.9% of closings a year earlier. Closings of new and existing homes increased year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 6.0% surge year-over-year in June to $273,300 per unit. This bump is smaller than the 19.3% surge in May year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, the average mortgage size was $247,068, up 2.2% from a year earlier. Average mortgage size on new homes went from $249,815 in May 2015 to $294,795 in May 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 24.7% of existing home closings, below 27.0% a year earlier. The percentage of existing home closings involving foreclosures went from 13.1% in June 2015 to 13.0% in June 2016 and REO closings as a percentage of existing home closings fell to 11.6% from 13.9% a year earlier.