There was a rise in new home closings in the Salinas, CA market in January year-over-year, but the increase was less than December 2015. New home closings moved from 9 a year earlier to 13 after the figure moved from 17 in December 2014 to 33 in December 2015.

A total of 240 new homes were sold during the 12 months that ended in January, up from 236 for the year that ended in December.

New home closings were 13 of the 256 total closings, up on a percentage basis from 9 of 249 a year earlier. Closings of new and existing homes jumped year-over-year in January after also rising in December year-over-year.

Pricing and Mortgage Trends

The average new home price was $556,577, up from $490,222 a year earlier. This followed a 6.5% gain in December year-over-year.

The average mortgage size on new homes was $397,256, up from $380,944. Average mortgage size climbed 11.0% in December 2015 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.

The average unit size of newly sold homes rose from 2,116 square feet a year earlier to 2,905 square feet.

Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 15.2% of closings, below 16.2% a year earlier. The percentage of existing home closings involving foreclosures went from 7.9% in January 2015 to 8.2% in January 2016 and REO closings as a percentage of existing home closings fell to 7.0% from 8.3% a year earlier.

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