In February, closings of new homes gained year-over-year in the Riverside, CA market, but the market seemed to show signs of stabilizing as the percentage rose was less than in January 2016. New home closings saw a hike of 26.4% from the year earlier to 537. In comparison, new home closings in the same month last year saw a 27.1% climb year-over-year in January.
A total of 7,117 new homes were sold during the 12 months that ended in February, up from 7,005 for the year that ended in January.
Of 4,854 total closings, 537 were of new homes. This is a surge from 9.5% of closings a year earlier. After remaining steady in January from a year earlier, closings of new and existing homes gained in February.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.3% lift year-over-year in February to $437,834 per unit. This gain is smaller than the 14.1% rise in January year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $356,078 in February, marking a 8.4% rise compared with a year earlier. Average mortgage size jumped 2.2% in January 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings gained from 8.0% of all closings in February 2015 to 12.7% of closings in February 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 87.3% of closings from 92.0% of closings.
For all new homes sold, the average unit size declined 1.2% year-over-year to 2,544 square feet in February 2016. In January, the average size of new homes sold went from 2,560 square feet a year earlier to 2,539 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 18.8% of existing closings, lower than 22.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.5% in February from 10.1% a year earlier while REO closings as a percentage of existing home closings sank to 10.3% from 11.8% a year earlier.