The Hanford, CA market saw an increase in closings of new homes in September year-over-year, picking up from a fall in August 2015. There was a 9.5% rise in new home closings from a year earlier. In comparison, new home closings in the same month last year 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.
Out of all housing closings, new home closings made up 15.8%. This is down from the a year earlier when new home closings accounted for 18.6% of total closings. For new and existing homes, closings increased year-over-year in September after also increasing 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 came after a 1.7% rise in August year-over-year.
The average mortgage size on newly sold homes jumped year-over-year in contrast to the average price of new homes. In September 2015, the average mortgage size on newly sold homes saw a 2.8% lift from a year earlier. 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 made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size jumped 10.4% year-over-year to 2,084 square feet in September 2015. The average size of newly sold homes moved from 1,954 square feet in August 2014 to 2,067 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 16.3% of existing home closings, below 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.