In April, there was a fall year-over-year in new home closings in the Visalia, CA market, and there were suggestions the market may be weakening with a percentage decline steeper than March 2016. There was a 21.7% drop in new home closings from a year earlier. This followed a 19.0% decline year-over-year in March.

A total of 885 new homes were sold during the 12 months that ended in April, down from 900 for the year that ended in March.

As a percentage of overall housing closings, new home closings represented 10.2%. This is down from the 13.0% of closings a year earlier. After increasing in March from a year earlier, closings of new and existing homes remained level in April.

Pricing and Mortgage Trends

In April, the average per-unit price of new homes slid by 4.9% year-over-year to $236,196. This decline compares to a 5.5% bump in March year-over-year.

Average mortgage size on new homes dropped year-over-year in contrast to new home prices. In April 2016, there was a 3.0% fall in the average mortgage size on new homes to $229,383. In March 2016, average mortgage size on newly sold homes saw a 5.4% rise year-over-year 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 April 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have made up no part of closings.

The average unit size of newly sold homes sank 24.0% year-over-year to 1,516 square feet in April 2016. In March, the average size of new homes sold went from 1,914 square feet a year earlier to 1,639 square feet.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 15.9% of existing closings, lower than 23.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.1% in April from 10.8% a year earlier while REO closings as a percentage of existing home closings dropped to 8.8% from 12.8% a year earlier.

Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in the Visalia, CA area.