The Hanford, CA market saw a rise in new home closings in July year-over-year, swinging up after a fall in June 2015. New home closings saw a climb of 75.0% from the year earlier to 35. This followed a 11.5% decline year-over-year in June.
A total of 240 new homes were sold during the 12 months that ended in July, up from 225 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 22.2%. This is better than the 16.8% of closings a year earlier. Closings of new and existing homes rose year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes slid 7.1% year-over-year in July to $240,124 per unit. This decline is a drop off from the 21.9% drop in June from a year earlier.
Average mortgage size on new homes dropped year-over-year in contrast to new home prices. In July 2015, average mortgage size fell 8.1% from a year earlier to $225,783. It went from $239,744 to $240,634 from June 2014 to June 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2015. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes sank 4.2% year-over-year to 1,891 square feet in July 2015. A fall was also seen in June 2015 when the average size of new homes sold declined 1.2% to 1,997 square feet. The average size of newly sold homes moved from 2,022 square feet in June 2014 to 1,997 square feet in June 2015. This drop was somewhat shallower than the price decline, which also happened in June 2015 when the average size of new homes sold slid 1.2% to 1,997 square feet from a year earlier.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 23.6% of closings, below 40.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.8% in July from 20.2% a year earlier while REO closings as a percentage of existing home closings fell to 13.8% from 20.2% a year earlier.