In May, there was a drop year-over-year in new home closings in the Salinas, CA market, but the decline was less than the year-over-year decline in April. New home closings moved from 18 a year earlier to 16 after the figure moved from 12 in April 2015 to 8 in April 2016.
A total of 249 new homes were sold during the 12 months that ended in May, down from 251 for the year that ended in April.
New home closings made up 5.6% of overall housing closings. A year ago, 6.0% of total closings were new home closings. After rising year-over-year in April, closings of new and existing homes slid year-over-year in May.
Pricing and Mortgage Trends
In May, the average per-unit price of new homes slid by 3.4% year-over-year to $509,694. This decline compares to a 33.5% boost in April year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. The average mortgage size sank to $399,344 in May, marking a 9.4% fall compared with last year. Average mortgage size on new homes went from $337,871 in April 2015 to $344,370 in April 2016.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. Attached unit closings rose from no part of all closings in May 2015 to 6.2% of closings in May 2016. Conversely, the share belonging to single-family homes declined to 93.8% of closings from all of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 10.0% of existing home closings, below 14.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 3.7% in May from 5.7% a year earlier while REO closings as a percentage of existing home closings fell to 6.3% from 9.3% a year earlier.