In the Salinas, CA market in May, closings of new homes dropped year-over-year, 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.
Of the total number of closings, new home closings made up 5.6%. As a part of the whole, new home closings were 6.0% a year earlier. Following a year-over-year increase in April, closings of new and existing homes slid year-over-year in May.
Pricing and Mortgage Trends
Average value of new homes sold in May was $509,694 per unit, down 3.4% from a year earlier. This drop compares to a 33.5% rise in April year-over-year.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. In May 2016, the average mortgage size on newly sold homes saw a 9.4% decline from a year earlier. 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 grown from last year while closings of single-family homes have dipped. Attached unit closings climbed from no part of all closings in May 2015 to 6.2% of closings in May 2016. At the same time, the share belonging to single-family homes sank to 93.8% of closings from all of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 10.0% of 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.