In September, closings of new homes jumped year-over-year in the Vallejo, CA market, and there were hints of strengthening market conditions as the percentage gain was sharper than August 2015. New home closings saw a rise of more than twofold from the year earlier to 83. This was after the housing market saw a 83.8% boost year-over-year in August.
A total of 660 new homes were sold during the 12 months that ended in September, up from 611 for the year that ended in August.
New home closings accounted for 12.2% of overall housing closings. This marks a rise from 6.6% of total closings a year earlier. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, there was a 15.3% lift year-over-year in the average price of newly sold homes, reaching $479,230 per unit. This lift is higher than the 13.2% bump in August year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 14.6% rise year-over-year to $399,830 in September. In August 2015, average mortgage size on newly sold homes saw a 10.7% hike year-over-year 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. Single-family home closings jumped from 97.1% of new closings in September 2014 to all of closings in September 2015. At the same time, the share of new home closings belonging to attached units dropped to no part of closings from 2.9% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 17.3% of existing home closings, below 20.3% a year earlier. The percentage of existing home closings involving foreclosures went from 8.7% in September 2014 to 9.4% in September 2015 and REO closings as a percentage of existing home closings fell to 7.9% from 11.6% a year earlier.