There was a rise in closings of new homes in the Merced, CA market in November year-over-year, and the increase was greater than October 2015. New home closings moved from 5 a year earlier to 20 after the figure moved from 6 in October 2014 to 21 in October 2015.
A total of 191 new homes were sold during the 12 months that ended in November, up from 176 for the year that ended in October.
New home closings were 20 out of 214 total closings, making up 9.3%. This is up on a percentage basis from 5 of 205 a year earlier. New and existing home closings rose in November after a remaining level in October from a year earlier.
Pricing and Mortgage Trends
The average new home value went from $260,125 last year to $328,350. This followed a 4.6% decline in October from a year earlier.
Average mortgage size on new homes increased to $266,072 from $254,978 last year. Average mortgage size on new homes went from $247,279 in October 2014 to $270,328 in October 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in November 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 14.9% of existing closings, lower than 22.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.7% in November from 9.0% a year earlier while REO closings as a percentage of existing home closings declined to 8.2% from 13.0% a year earlier.