In January, closings of new homes rose year-over-year in the Riverside, CA market, and there were suggestions that the market may be improving as the percentage lift was better than December 2015. New home closings saw a 25.2% hike from a year earlier to 407. This was after the housing market saw a 24.9% boost year-over-year in December.
A total of 7,008 new homes were sold during the 12 months that ended in January, up from 6,926 for the year that ended in December.
Out of all housing closings, new home closings represented 8.8%. This is a boost from 7.0% of closings a year earlier. After increasing in December from a year earlier, closings of new and existing homes remained level in January.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year 14.4% in January to $469,175 per unit. This hike is better than the 8.9% rise in December year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. In January 2016, the average mortgage size on newly sold homes saw a 1.9% rise from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 8.0% bump year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 95.7% of new home closings to 95.8% of closings while attached units have gone from 4.3% of closings to 4.2% of closings.
There was a move in the average unit size of newly sold homes from 2,560 square feet in January 2015 to 2,539 square feet in January 2016. In December, the average size of new homes sold went from 2,626 square feet a year earlier to 2,588 square feet. In December 2015, the average size of newly sold homes slid 1.4% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 19.1% of existing home closings, down from 21.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.3% in January from 10.5% a year earlier while REO closings as a percentage of existing home closings declined to 9.8% from 11.0% a year earlier.