Closings of new homes grew year-over-year in April in the Riverside, CA market, but with a rise less sharp than March 2016, there were suggestions the market may be stabilizing. There was a 10.6% hike in new home closings from a year earlier. This followed a 22.1% rise year-over-year in March.
A total of 7,291 new homes were sold during the 12 months that ended in April, up from 7,242 for the year that ended in March.
Of 5,505 total closings, 512 were of new homes. This is an increase on a percentage basis, as new home closings were 6.9% of total closings a year ago. After rising year-over-year in March, closings of new and existing homes declined year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes jumped year-over-year 2.2% in April to $453,072 per unit. This rise is smaller than the 5.7% hike in March year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. The average mortgage size saw a 4.5% boost year-over-year to $358,200 in April. In March 2016, average mortgage size grew 7.0% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units climbed from 3.7% of closings in April 2015 to 7.4% of closings in April 2016. Conversely, the share belonging to single-family homes slid to 92.6% of closings from 96.3% of closings.
The average unit size of newly sold homes went from 2,709 square feet in April 2015 to 2,699 square feet in April 2016. In March, the average size of new homes sold went from 2,715 square feet a year earlier to 2,734 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 14.0% of existing home closings, below 18.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.9% in April from 8.3% a year earlier while REO closings as a percentage of existing home closings declined to 8.1% from 9.7% a year earlier.