In the Visalia, CA market, new home closings jumped year-over-year in August, but as the percentage gained less than July 2015, the market seemed to show signs of leveling. New home closings saw a 22.8% jump from a year earlier to 70. This came after a 71.2% climb year-over-year in July.
A total of 815 new homes were sold during the 12 months that ended in August, up from 802 for the year that ended in July.
New home closings made up 14.3% of overall housing closings. This is better than the 11.6% of closings a year earlier. After rising year-over-year in July, closings of new and existing homes sank year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year 5.2% in August to $260,363 per unit. This hike compares to a 4.5% decline in July from a year earlier.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. The average mortgage size rose to $238,782 in August, marking a 2.1% boost compared with a year earlier. Average mortgage size slid 3.1% in July 2015 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 August 2015. 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 declined 3.6% year-over-year to 1,912 square feet in August 2015. The average size of newly sold homes moved from 1,996 square feet in July 2014 to 1,677 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 20.8% of existing closings, lower than 28.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.6% in August from 13.3% a year earlier while REO closings as a percentage of existing home closings dropped to 12.2% from 15.6% a year earlier.