In July, there was an increase in closings of new homes in the Merced, CA market year-over-year, but signs of market leveling were showing as the percentage rise was less than June 2016. New home closings saw a jump of 72.7% from the year earlier to 38. This was after the housing market saw a more than twofold jump year-over-year in June.
A total of 310 new homes were sold during the 12 months that ended in July, up from 294 for the year that ended in June.
New home closings accounted for 13.2% of overall housing closings. This is better than the 8.3% of closings a year earlier. Closings of new and existing homes jumped year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 4.3% hike year-over-year as it grew to $296,976 per unit. This rise is smaller than the 11.3% bump in June year-over-year.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. It declined 5.3% in July from a year earlier to $252,861. In June 2016, average mortgage size climbed 7.5% 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 July 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 16.1% of existing closings, lower than 18.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.4% in July from 9.1% a year earlier and REO closings moved from 9.5% of existing home closings in July 2015 to 9.6% in July 2016.