Closings of new homes jumped year-over-year in June in the Hanford, CA market, but the percentage lift was less than May 2016, suggesting the market may be leveling. Closings climbed more than twofold from a year earlier to 53. This was after the housing market saw a more than twofold rise year-over-year in May.
A total of 333 new homes were sold during the 12 months that ended in June, up from 303 for the year that ended in May.
Of 182 total closings, 53 were of new homes. This marks a rise from 13.4% of total closings a year earlier. Closings of new and existing homes increased year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 27.4% surge year-over-year as it grew to $268,879 per unit. This hike is an improvement over the 26.2% surge in May year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, the average mortgage size on newly sold homes saw a 4.1% hike from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 17.8% surge year-over-year 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 June 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
Foreclosures and real estate owned (REO) closings decreased in June from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings accounted for 26.4% of existing home closings, down from 29.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.4% in June from 10.1% a year earlier while REO closings as a percentage of existing home closings fell to 14.0% from 19.5% a year earlier.