There was a rise in closings of new homes in the Vallejo, CA market in January year-over-year, but signs of market leveling were showing as the percentage surge was less than December 2015. New home closings saw a boost of 80.6% from the year earlier to 65. In comparison, new home closings in the same month last year saw a 81.5% jump year-over-year in December.
A total of 811 new homes were sold during the 12 months that ended in January, up from 782 for the year that ended in December.
New home closings accounted for 15.5% of overall housing closings. This is an increase on a percentage basis, as new home closings were 8.8% of total closings a year ago. For new and existing homes, closings jumped year-over-year in January after also increasing in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in January to $484,808 per unit, a rise of 20.5%. This rise is smaller than the 22.9% bump in December year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size gained 17.9% to $393,635 in January from a year earlier. In December 2015, average mortgage size jumped 20.9% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes rose from 91.7% in January 2015 to all of closings in January 2016. At the same time, the share of new home closings belonging to attached units declined to no part of closings from 8.3% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 19.2% of existing home closings, down from 27.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 8.2% in January from 9.9% a year earlier while REO closings as a percentage of existing home closings fell to 11.0% from 17.9% a year earlier.