Closings of new homes in the Chico, CA market dropped year-over-year in December, and the decline was by a larger percentage than the November 2015. New home closings moved from 11 a year earlier to 2 after the figure moved from 16 in November 2014 to 3 in November 2015.
A total of 99 new homes were sold during the 12 months that ended in December, down from 108 for the year that ended in November.
New home closings were 2 out of the 262 total closings, down on a percentage basis from 11 of 274 a year earlier. After rising year-over-year in November, closings of new and existing homes dropped year-over-year in December.
Pricing and Mortgage Trends
The average new home value went from $294,236 last year to $382,500. This followed a 3.7% fall in November from a year earlier.
From the year-ago figure of $227,643, the average mortgage size on new homes moved up to $280,000. Average mortgage size on new homes went from $256,069 in November 2014 to $177,500 in November 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 December 2015.
The average unit size of newly sold homes fell from 2,081 square feet a year earlier to 1,759 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 22.3% of existing home closings, down from 27.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.6% in December from 14.1% a year earlier and REO closings moved from 13.3% of existing home closings in December 2014 to 12.7% in December 2015.