In the Riverside, CA market, new home closings increased year-over-year in June, but the increased on a percentage basis less sharlpy than May 2016, showing signs of market stabilization. Closings rose 2.4% from a year earlier to 723. This was after the housing market saw a 5.4% rise year-over-year in May.
A total of 7,406 new homes were sold during the 12 months that ended in June, up from 7,389 for the year that ended in May.
Of the total number of closings, new home closings made up 10.3%. As a part of the whole, new home closings were 9.8% a year earlier. Following a year-over-year decline in May, closings of new and existing homes also fell year-over-year in June.
Pricing and Mortgage Trends
In June, there was a 1.9% surge year-over-year in the average price of newly sold homes, reaching $438,847 per unit. This bump is smaller than the 7.3% rise in May year-over-year.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, average mortgage size jumped 2.4% from a year earlier to $358,155. Average mortgage size rose 1.7% in May 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings grew from 7.5% of all closings in June 2015 to 10.0% of closings in June 2016. Conversely, the share belonging to single-family homes fell to 90.0% of closings from 92.5% of closings.
The average unit size of newly sold homes declined 4.4% year-over-year to 2,549 square feet in June 2016. This drop was opposite the price gain, a pattern also seen in May 2016 when the average size of newly sold homes sank 6.0% to 2,486 square feet. In May, the average size of new homes sold went from 2,646 square feet a year earlier to 2,486 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 12.4% of existing home closings, below 16.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.5% in June from 7.3% a year earlier while REO closings as a percentage of existing home closings sank to 6.9% from 9.0% a year earlier.