In the Riverside, CA market in August, closings of new homes increased year-over-year, but there were signs of market leveling as the percentage hike was less than July 2015. Closings climbed 23.5% from a year earlier to 572. In comparison, new home closings in the same month last year saw a 45.5% jump year-over-year in July.
A total of 6,300 new homes were sold during the 12 months that ended in August, up from 6,191 for the year that ended in July.
New home closings made up 8.9% of overall housing closings. New home closings were 8.5% of overall closings last year. For new and existing homes, closings gained year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 5.1% in August to $424,653 per unit. This lift is smaller than the 8.4% bump in July year-over-year.
Average mortgage size on new homes grew year-over-year along with new home prices. It increased 2.6% in August from a year earlier to $339,204. In July 2015, average mortgage size rose 9.4% 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 93.5% of new home closings to 93.4% of closings while attached units have gone from 6.5% of closings to 6.6% of closings.
For all new homes sold, the average unit size gained 2.8% year-over-year to 2,617 square feet in August 2015. The average size of newly sold homes moved from 2,571 square feet in July 2014 to 2,834 square feet in July 2015. An increase in both the average size and price of newly sold homes was also seen in July 2015 when the average size climbed 10.2% to 2,834 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 17.9% of existing home closings, below 18.5% a year earlier. The percentage of existing home closings involving foreclosures went from 6.8% in August 2014 to 7.4% in August 2015 and REO closings as a percentage of existing home closings sank to 10.5% from 11.7% a year earlier.