There was a rise in closings of new homes in the Hanford, CA market in December year-over-year, and with a more robust rise than November 2015, there are hints the market may be strengthening. Closings increased 10.0% from a year earlier to 44. This was after the housing market saw a 4.8% hike year-over-year in November.
A total of 271 new homes were sold during the 12 months that ended in December, up from 267 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 25.1%. This is a fall 28.0% of closings a year earlier. For new and existing homes, closings climbed year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
In December, there was a 7.6% fall year-over-year in the average per-unit price of newly sold homes, settling at $245,500. This decline is larger than the 1.9% drop in November from a year earlier.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. In December 2015, average mortgage size declined 5.1% from a year earlier to $231,627. In November 2015, average mortgage size sank 9.6% 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.
Foreclosures and real estate owned (REO) closings decreased in December from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, made up 32.1% of existing closings, lower than 37.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 24.4% in December from 15.5% a year earlier while REO closings as a percentage of existing home closings dropped to 7.6% from 22.3% a year earlier.