In September, there was an increase in closings of new homes in the Visalia, CA market year-over-year, and the percentage surge, which was better than August 2015, suggested the market may be improving. There was a 66.7% climb in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 22.8% rise year-over-year in August.
A total of 862 new homes were sold during the 12 months that ended in September, up from 822 for the year that ended in August.
Of 570 total closings, 100 were of new homes. This is a bump from 13.2% of closings a year earlier. Closings of new and existing homes increased year-over-year in September following a fall in August year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $259,064 in September, up 17.8% from last year. This gain is higher than the 5.2% boost in August year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In September 2015, average mortgage size climbed 6.1% from a year earlier to $235,182. Average mortgage size jumped 2.1% in August 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes dropped 2.3% year-over-year to 2,012 square feet in September 2015. For newly sold homes, an average size fall contrasting with an average price boost was also seen in August 2015 when the average size of newly sold homes sank 3.6% to 1,912 square feet. The average size of newly sold homes moved from 1,984 square feet in August 2014 to 1,912 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to rise in September from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, made up 31.5% of existing home closings, higher than 23.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 22.6% in September from 7.8% a year earlier while REO closings as a percentage of existing home closings fell to 8.9% from 15.7% a year earlier.