New home closings in the Bakersfield, CA market increased year-over-year in June, recovering from a fall in May 2016. There was a 1.7% jump in new home closings from a year earlier. This followed a 1.5% fall year-over-year in May.
A total of 1,733 new homes were sold during the 12 months that ended in June, up from 1,730 for the year that ended in May.
New home closings were 13.6% of total number of closings, same as last year. Following a year-over-year increase in May, closings of new and existing homes also rose year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes declined year-over-year to $281,970 per unit, marking a 3.4% fall from the year-earlier figure. This fall compares to a 3.3% hike in May year-over-year.
Average mortgage size on new homes slid year-over-year in contrast to new home prices. It fell 3.9% in June from a year earlier, reaching $253,528. In May 2016, average mortgage size on newly sold homes saw a 2.0% boost 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 June 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size dropped 17.0% year-over-year to 1,801 square feet in June 2016. The average size of newly sold homes moved from 2,132 square feet in May 2015 to 2,271 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 17.8% of existing home closings, down from 21.7% a year earlier. The percentage of existing home closings involving foreclosures went from 8.3% in June 2015 to 7.7% in June 2016 and REO closings as a percentage of existing home closings sank to 10.2% from 13.4% a year earlier.