New home closings in the Harrisburg, CA market declined year-over-year in July, and with a percentage fall steeper than June 2015, there were signals the market may be worsening. There was a 71.9% drop in new home closings from a year earlier. This came on the heels of a 56.1% decline year-over-year in June.
A total of 454 new homes were sold during the 12 months that ended in July, down from 500 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 2.2%. This is a drop 8.4% of closings a year earlier. Closings of new and existing homes rose year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 2.8% decline year-over-year in the average per-unit price of newly sold homes, settling at $277,377. This fall is a drop off from the 31.8% drop in June from a year earlier.
In July 2015, average mortgage size on newly sold homes moved from $231,645 to $233,938 from July 2014. In June 2015, average mortgage size on newly sold homes saw a 22.8% fall from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings jumped from 42.2% of all closings in July 2014 to 44.4% of closings in July 2015. Conversely, the share belonging to single-family homes declined to 55.6% of closings from 57.8% of closings.
The average unit size of newly sold homes went from 2,254 square feet in July 2014 to 2,262 square feet in July 2015. The average size of newly sold homes moved from 2,509 square feet in June 2014 to 1,813 square feet in June 2015. In June 2015, the average size of newly sold homes dropped 27.7% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 14.2% of existing closings, lower than 22.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.2% in July from 14.4% a year earlier while REO closings as a percentage of existing home closings gained to 10.1% from 8.1%.