Closings of new homes fell year-over-year in April in the Bakersfield, CA market, and the market seemed to be worsening in light of the percentage drop steeper than March 2016. New home closings saw a 25.2% fall from a year earlier to 98. In comparison, new home closings in the same month last year saw a 19.2% fall year-over-year in March.
A total of 1,732 new homes were sold during the 12 months that ended in April, down from 1,765 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 9.9%. This is down from the a year earlier when new home closings accounted for 10.9% of total closings. Following a year-over-year rise in March, closings of new and existing homes slid year-over-year in April.
Pricing and Mortgage Trends
Average price of newly sold homes had a 6.5% lift year-over-year to $301,477 per unit in April. This bump follows a move from $286,309 per unit in March 2015 to $287,601 in March 2016.
The average mortgage size on new homes moved north year-over-year along with new home prices. Average mortgage size increased 7.3% to $278,618 in April from a year earlier. It went from $259,503 to $259,990 from March 2015 to March 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 April 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
There was a 34.9% rise year-over-year in the average unit size of newly sold homes to 2,881 square feet in April 2016. The average size of newly sold homes moved from 2,130 square feet in March 2015 to 2,386 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 20.2% of existing closings, lower than 24.9% a year earlier. The percentage of existing home closings involving foreclosures went from 10.2% in April 2015 to 9.6% in April 2016 and REO closings as a percentage of existing home closings fell to 10.6% from 14.8% a year earlier.