The Bakersfield, CA market saw a drop in new home closings year-over-year in February, curving down after an increase in January 2016. New home closings saw a drop of 5.4% from the year earlier to 106. This came after a 15.2% climb year-over-year in January.
A total of 1,789 new homes were sold during the 12 months that ended in February, down from 1,795 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 12.3%. This is down from the a year earlier when new home closings made up 13.7% of total closings. After staying stable in January from a year earlier, closings of new and existing homes grew in February.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.1% drop year-over-year in February to $297,785 per unit. This drop is a drop off from the 1.1% fall in January from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. The average mortgage size fell to $265,912 in February, marking a 1.2% fall compared with last year. In January 2016, average mortgage size slid 2.2% 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 February 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size gained 13.1% year-over-year to 2,445 square feet in February 2016. The average size of newly sold homes moved from 2,148 square feet in January 2015 to 2,345 square feet in January 2016. This boost was opposite the price decline, a pattern also seen in January 2016 when the average size of newly sold homes climbed 9.2% to 2,345 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 23.6% of existing closings, lower than 24.0% a year earlier. The percentage of existing home closings involving foreclosures went from 10.9% in February 2015 to 11.5% in February 2016 and REO closings as a percentage of existing home closings declined to 12.1% from 13.1% a year earlier.