The Chico, CA market saw a drop in new home closings year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 9 a year earlier to 2 after the figure moved from 11 in January 2015 to 2 in January 2016.
A total of 83 new homes were sold during the 12 months that ended in February, down from 90 for the year that ended in January.
On a percentage basis, new home closings as a part of total closings decreased to 1.0% from 3.9% a year earlier. Following a year-over-year decline in January, closings of new and existing homes also sank year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes was $464,750, an increase from $313,556 a year earlier. This came after a 22.8% rise in January year-over-year.
Average mortgage size on new homes increased to $339,750 from $267,644 last year. Average mortgage size on new homes went from $297,703 in January 2015 to $353,400 in January 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 February 2016.
The average unit size of newly sold homes rose from 1,739 square feet a year earlier to 1,981 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in February from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings represented 25.7% of existing home closings, above 24.5% a year earlier. The percentage of existing home closings involving foreclosures went from 10.9% in February 2015 to 11.7% in February 2016 and REO closings moved from 13.6% of existing home closings in February 2015 to 14.1% in February 2016.