There was an increase in new home closings in the Salinas, CA market in December year-over-year, but the increase was less than November 2015. New home closings moved from 16 a year earlier to 33 after the figure moved from 7 in November 2014 to 28 in November 2015.

A total of 236 new homes were sold during the 12 months that ended in December, up from 219 for the year that ended in November.

As a percentage of overall housing closings, new home closings accounted for 10.7%. This is a hike from 5.3% of closings a year earlier. Closings of new and existing homes jumped year-over-year in December after also rising in November year-over-year.

Pricing and Mortgage Trends

In December, the average value of new homes saw a 3.1% bump year-over-year as it grew to $527,564 per unit. This surge compares to a 13.9% drop in November from a year earlier.

The average mortgage size on new homes moved north year-over-year along with new home prices. It rose to $419,429 in December, a 7.9% gain. Average mortgage size on new homes went from $412,593 in November 2014 to $424,873 in November 2015.

Other Market Trends

Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units increased from no part of closings in December 2014 to 45.5% of closings in December 2015. Conversely, the share belonging to single-family homes dropped to 54.5% of closings from all of closings.

Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 14.9% of existing closings, lower than 18.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.9% in December from 8.7% a year earlier while REO closings as a percentage of existing home closings sank to 8.0% from 9.4% a year earlier.

Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in the Salinas, CA area.