There was a rise in new home closings in the Hanford, CA market in September year-over-year, rallying back from a drop in August 2015. There was a 9.5% hike in new home closings from a year earlier. This was after the housing market saw a 3.7% decline year-over-year in August.
A total of 253 new homes were sold during the 12 months that ended in September, up from 251 for the year that ended in August.
New home closings made up 15.8% of overall housing closings. This is a decline 18.6% of closings a year earlier. Closings of new and existing homes gained year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes went from $241,248 in September 2014 to $240,370 in September 2015. This followed a 1.7% gain in August year-over-year.
The average mortgage size on newly sold homes increased year-over-year in contrast to the average price of new homes. It jumped 2.8% in September from a year earlier to $235,861. In August 2015, average mortgage size remained level from a year earlier at $241,472.
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 represented all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes gained 10.4% year-over-year to 2,084 square feet in September 2015. In August, the average size of new homes sold went from 1,954 square feet a year earlier to 2,067 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 16.3% of existing home closings, down from 34.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.1% in September from 15.2% a year earlier while REO closings as a percentage of existing home closings declined to 8.1% from 19.6% a year earlier.