There was a rise in new home closings in the Modesto, CA market in June year-over-year, and the percentage gain was better than May 2016, suggesting the market may be strengthening. New home closings saw a climb of more than twofold from the year earlier to 64. This followed a 25.0% boost year-over-year in May.
A total of 335 new homes were sold during the 12 months that ended in June, up from 295 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 8.6%. This is a surge from 3.3% of closings a year earlier. Following a decline in May year-over-year, closings of new and existing homes gained year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 2.6% in June to $306,970 per unit. This boost is smaller than the 9.3% gain in May year-over-year.
Average mortgage size on newly sold homes was unchanged from a year ago, remaining stable at $263,745. Average mortgage size gained 16.7% in May 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units climbed from no part of closings in June 2015 to 14.1% of closings in June 2016. At the same time, the share belonging to single-family homes dropped to 85.9% of closings from all of closings.
There was a 6.5% bump year-over-year in the average unit size of newly sold homes to 2,018 square feet in June 2016. An increase was also seen in May 2016 when the average size of new homes sold increased 6.3% to 2,014 square feet. The average size of newly sold homes moved from 1,895 square feet in May 2015 to 2,014 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 11.4% of existing closings, lower than 16.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.7% in June from 6.8% a year earlier while REO closings as a percentage of existing home closings declined to 6.7% from 9.7% a year earlier.