In March, there was an increase in closings of new homes in the Vallejo, CA market year-over-year, but the percentage edged up less than February 2016, suggesting the market may be leveling out. New home closings saw a 33.9% jump from a year earlier to 79. In comparison, new home closings in the same month last year saw a more than threefold boost year-over-year in February.
A total of 882 new homes were sold during the 12 months that ended in March, up from 862 for the year that ended in February.
Out of all housing closings, new home closings represented 12.8%. This is better than the 10.9% of closings a year earlier. For new and existing homes, closings increased year-over-year in March after also increasing in February year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 7.0% in March to $500,299 per unit. This surge is higher than the 6.1% hike in February year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. It gained 3.9% in March from a year earlier to $404,758. In February 2016, average mortgage size on newly sold homes saw a 2.6% decline 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 gained from 96.6% in March 2015 to all of closings in March 2016. Conversely, the share of new home closings belonging to attached units dropped to no part of closings from 3.4% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 16.9% of closings, below 18.3% a year earlier. The percentage of existing home closings involving foreclosures went from 7.9% in March 2015 to 7.1% in March 2016 and REO closings moved from 10.4% of existing home closings in March 2015 to 9.9% in March 2016.