There was an increase in new home closings in the Visalia, CA market in December year-over-year, but with a rise less sharp than November 2015, there were suggestions the market may be evening out. New home closings saw a jump of 1.6% from the year earlier to 131. This was after the housing market saw a 45.5% hike year-over-year in November.
A total of 873 new homes were sold during the 12 months that ended in December, up from 871 for the year that ended in November.
Out of all housing closings, new home closings made up 22.5%. This is down from the a year earlier when new home closings represented 24.2% of total closings. After dropping in November from a year earlier, closings of new and existing homes climbed year-over-year in December.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 5.0% year-over-year in December to $245,897 per unit. This surge is an improvement over the 3.1% rise in November year-over-year.
For newly sold homes, the average mortgage size saw a gain year-over-year along with new home prices. In December 2015, the average mortgage size was $230,449, up 8.6% from a year earlier. Average mortgage size rose 5.2% in November 2015 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.
There was a 21.6% drop year-over-year in the average unit size of newly sold homes to 1,436 square feet in December 2015. In November, the average size of new homes sold went from 2,078 square feet a year earlier to 2,358 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 19.5% of existing home closings, down from 28.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.4% in December from 13.4% a year earlier while REO closings as a percentage of existing home closings sank to 9.1% from 15.1% a year earlier.