Closings of new homes in the Stockton, CA market increased year-over-year in January, but the market seemed to show signs of leveling out as the percentage gained was less than in December 2015. There was a 39.0% rise in new home closings from a year earlier. This came after a 40.1% rise year-over-year in December.
A total of 1,343 new homes were sold during the 12 months that ended in January, up from 1,320 for the year that ended in December.
Out of all housing closings, new home closings accounted for 11.7%. This is better than the 10.1% of closings a year earlier. Closings of new and existing homes increased year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes slid 1.5% year-over-year in January to $443,911 per unit. This drop compares to a 4.2% rise in December year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In January 2016, average mortgage size on new homes sold was $350,167, down 3.2% from a year earlier. Average mortgage size gained 1.7% in December 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units increased from no part of closings in January 2015 to 9.8% of closings in January 2016. At the same time, the share belonging to single-family homes slid to 90.2% of closings from all of closings.
For all new homes sold, the average unit size jumped 13.5% year-over-year to 2,979 square feet in January 2016. In December, the average size of new homes sold went from 2,541 square feet a year earlier to 2,204 square feet.
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. Combined, foreclosures plus REO closings accounted for 15.9% of existing home closings, below 26.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.1% in January from 13.5% a year earlier while REO closings as a percentage of existing home closings sank to 7.8% from 12.9% a year earlier.