In May, there was an increase in closings of new homes in the Riverside, CA market year-over-year, but with a rise less sharp than April 2016, there were suggestions the market may be leveling out. New home closings saw a climb of 5.4% from the year earlier to 581. This was after the housing market saw a 11.0% rise year-over-year in April.
A total of 7,326 new homes were sold during the 12 months that ended in May, up from 7,296 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 9.5% of overall housing closings. As a part of the whole, new home closings were 8.8% a year earlier. For new and existing homes, closings fell in May after also declining in April year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price gained 7.1% year-over-year in May to $470,194 per unit. This gain is higher than the 2.3% hike in April year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. In May 2016, there was a 1.7% gain in the average mortgage size, reaching $360,653. In April 2016, average mortgage size on newly sold homes saw a 4.5% surge year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings climbed from 4.2% of all closings in May 2015 to 7.2% of closings in May 2016. At the same time, the share belonging to single-family homes declined to 92.8% of closings from 95.8% of closings.
There was a 3.6% hike year-over-year in the average unit size of newly sold homes to 2,781 square feet in May 2016. In April, the average size of new homes sold went from 2,695 square feet a year earlier to 2,699 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 14.1% of closings, below 16.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.4% in May from 7.2% a year earlier and REO closings moved from 9.6% of existing home closings in May 2015 to 8.7% in May 2016.