In the Modesto, CA market in February, closings of new homes grew year-over-year, rebounding from a year-over-year decline in January 2016. New home closings moved from 16 a year earlier to 30 after the figure moved from 12 in January 2015 to 11 in January 2016.
A total of 269 new homes were sold during the 12 months that ended in February, up from 255 for the year that ended in January.
Of 467 total closings, 30 were of new homes. This is better than the 3.7% of closings a year earlier. For new and existing homes, closings jumped year-over-year in February after also increasing in January year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 7.6% surge year-over-year to $332,950 per unit in February. This hike compares to a 7.9% fall in January from a year earlier.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. In February 2016, the average mortgage size was $254,096, a 7.6% gain from a year earlier. Average mortgage size on new homes went from $286,527 in January 2015 to $251,055 in January 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 February 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 4.6% drop year-over-year in the average unit size of newly sold homes to 1,940 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 16.2% of existing home closings, below 28.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.0% in February from 10.1% a year earlier while REO closings as a percentage of existing home closings declined to 8.2% from 18.3% a year earlier.