Closings of new homes jumped year-over-year in May in the Merced, CA market, but the increase was less than April 2016. New home closings moved from 23 a year earlier to 30 after the figure moved from 10 in April 2015 to 17 in April 2016.
A total of 274 new homes were sold during the 12 months that ended in May, up from 267 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 11.5%. This marks a rise from 8.5% of total closings a year earlier. Following a year-over-year rise in April, closings of new and existing homes dropped year-over-year in May.
Pricing and Mortgage Trends
In May, there was a 7.4% rise year-over-year in the average price of newly sold homes, reaching $309,750 per unit. This bump is better than the 3.4% rise in April year-over-year.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. In May 2016, the average mortgage size was $273,544, up 9.8% from a year earlier. Average mortgage size on new homes went from $255,618 in April 2015 to $259,784 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes grew 57.9% year-over-year to 3,705 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 13.9% of existing home closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.4% in May from 10.5% a year earlier while REO closings as a percentage of existing home closings sank to 6.5% from 13.4% a year earlier.