New home closings declined year-over-year in June in the Visalia, CA market, swinging downward off a year-over-year lift in May 2016. Closings declined 7.3% from a year earlier to 76. This came on the heels of a 24.6% rise year-over-year in May.
A total of 900 new homes were sold during the 12 months that ended in June, down from 906 for the year that ended in May.
Out of all housing closings, new home closings accounted for 12.7%. This is down from the a year earlier when new home closings represented 14.4% of total closings. Closings of new and existing homes rose year-over-year in June after also rising in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in June to $277,459 per unit, a rise of 19.2%. This surge compares to a 1.8% drop in May from a year earlier.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, the average mortgage size on newly sold homes saw a 13.5% lift from a year earlier. Average mortgage size gained 1.9% in May 2016 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 June 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size sank 14.7% year-over-year to 1,776 square feet in June 2016. The average size of newly sold homes moved from 1,794 square feet in May 2015 to 1,888 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 16.4% of existing closings, lower than 21.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.6% in June from 10.0% a year earlier while REO closings as a percentage of existing home closings dropped to 8.8% from 11.3% a year earlier.