Closings of new homes climbed year-over-year in August in the Stockton, CA market, but the percentage surge was not as steep as July 2015, giving signs of market stabilizing. There was a 49.3% boost in new home closings from a year earlier. This followed a 74.1% rise year-over-year in July.
A total of 1,124 new homes were sold during the 12 months that ended in August, up from 1,088 for the year that ended in July.
New home closings accounted for 11.3% of overall housing closings. This is an increase on a percentage basis, as new home closings were 9.4% of total closings a year ago. Following a year-over-year increase in July, closings of new and existing homes also rose year-over-year in August.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 1.7% boost year-over-year as it grew to $430,825 per unit. This bump is smaller than the 10.2% boost in July year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. The average mortgage size saw a 4.3% hike year-over-year to $349,151 in August. In July 2015, average mortgage size on newly sold homes saw a 6.5% boost year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have fallen. Attached unit closings jumped from no part of all closings in August 2014 to 1.8% of closings in August 2015. At the same time, the share belonging to single-family homes sank to 98.2% of closings from all of closings.
For all new homes sold, the average unit size rose 6.1% year-over-year to 2,640 square feet in August 2015. An increase in both the average size and price of newly sold homes was also seen in July 2015 when the average size gained 9.4% to 2,471 square feet. In July, the average size of new homes sold went from 2,259 square feet a year earlier to 2,471 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.3% of existing home closings, down from 22.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.8% in August from 9.9% a year earlier while REO closings as a percentage of existing home closings fell to 6.4% from 12.9% a year earlier.