New home closings in the Merced, CA market jumped year-over-year in May, but the increase was less than April 2016. New home closings moved from 23 a year earlier to 30 after the figure moved from 10 in April 2015 to 17 in April 2016.
A total of 274 new homes were sold during the 12 months that ended in May, up from 267 for the year that ended in April.
New home closings accounted for 11.5% of overall housing closings. This is an increase on a percentage basis, as new home closings were 8.5% of total closings a year ago. Following a year-over-year rise in April, closings of new and existing homes fell year-over-year in May.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.4% lift year-over-year in May to $309,750 per unit. This hike is an improvement over the 3.4% bump in April year-over-year.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. The average mortgage size rose to $273,544 in May, marking a 9.8% rise compared with a year earlier. Average mortgage size on new homes went from $255,618 in April 2015 to $259,784 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size gained 57.9% year-over-year to 3,705 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 13.9% of existing home closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.4% in May from 10.5% a year earlier while REO closings as a percentage of existing home closings slid to 6.5% from 13.4% a year earlier.