The Hanford, CA market saw a rise in new home closings in June year-over-year, but the percentage lift, which was less than May 2016, seemed to suggest market leveling. Closings rose more than twofold from a year earlier to 53. This was after the housing market saw a more than twofold hike year-over-year in May.
A total of 333 new homes were sold during the 12 months that ended in June, up from 303 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 29.1%. This is better than the 13.4% of closings a year earlier. For new and existing homes, closings increased year-over-year in June after also increasing in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in June to $268,879 per unit, a rise of 27.4%. This surge is better than the 26.2% bump in May year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In June 2016, the average mortgage size was $250,413, up 4.1% from a year earlier. Average mortgage size grew 17.8% 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 represented all of new home closings while attached unit closings have accounted for no part of closings.
Foreclosures and real estate owned (REO) closings decreased in June from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 26.4% of closings, below 29.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 12.4% in June from 10.1% a year earlier while REO closings as a percentage of existing home closings dropped to 14.0% from 19.5% a year earlier.