Closings of new homes in the Stockton, CA market climbed year-over-year in September, but with an increase less steep than that of August 2015, the market seemed to be showing signs of stabilizing. New home closings saw a 48.2% climb from a year earlier to 126. In comparison, new home closings in the same month last year saw a 49.3% climb year-over-year in August.
A total of 1,178 new homes were sold during the 12 months that ended in September, up from 1,137 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 12.7%. This is an increase on a percentage basis, as new home closings were 10.8% of total closings a year ago. Following a year-over-year increase in August, closings of new and existing homes also climbed year-over-year in September.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 4.7% in September to $434,782 per unit. This hike is better than the 1.7% surge in August year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In September 2015, the average mortgage size on newly sold homes saw a 4.3% surge from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 4.3% lift year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from all of new home closings to 99.2% of closings while attached units have gone from no part of closings to 0.8% of closings.
For all new homes sold, the average unit size slid 8.7% year-over-year to 2,265 square feet in September 2015. In August, the average size of new homes sold went from 2,489 square feet a year earlier to 2,640 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 16.1% of existing home closings, below 20.3% a year earlier. The percentage of existing home closings involving foreclosures went from 9.3% in September 2014 to 8.7% in September 2015 and REO closings as a percentage of existing home closings fell to 7.4% from 11.0% a year earlier.