In the Merced, CA market in July, closings of new homes increased year-over-year, and the increase was greater than June 2015. New home closings moved from 3 a year earlier to 18 after the figure moved from 9 in June 2014 to 13 in June 2015.
A total of 111 new homes were sold during the 12 months that ended in July, up from 96 for the year that ended in June.
New home closings were 18 of the 265 total closings, up on a percentage basis from 3 of 275 a year earlier. Closings of new and existing homes fell year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $294,533, compared with $362,750 last year. This came after a 25.5% fall in June from a year earlier.
There was a decline in average mortgage size on new homes, going from $417,000 last year to $271,429 in July 2015. Average mortgage size on new homes went from $332,863 in June 2014 to $246,320 in 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.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 18.2% of closings, below 26.8% a year earlier. The percentage of existing home closings involving foreclosures went from 9.2% in July 2014 to 8.9% in July 2015 and REO closings as a percentage of existing home closings declined to 9.3% from 17.6% a year earlier.