In the Visalia, CA market in February, new home closings climbed year-over-year, and with a stronger hike in comparison with January 2016, the market seems to be strengthening. New home closings saw a 67.6% rise from a year earlier to 57. In comparison, new home closings in the same month last year saw a 37.1% hike year-over-year in January.
A total of 912 new homes were sold during the 12 months that ended in February, up from 889 for the year that ended in January.
Out of all housing closings, new home closings made up 14.1%. This marks a rise from 9.2% of total closings a year earlier. Closings of new and existing homes gained year-over-year in February after also rising in January year-over-year.
Pricing and Mortgage Trends
In February, there was a 10.7% decline year-over-year in the average per-unit price of newly sold homes, settling at $231,177. This drop compares to a 11.4% gain in January year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year in contrast to new home prices. In February 2016, average mortgage size climbed 1.7% from a year earlier to $245,217. In January 2016, average mortgage size on newly sold homes saw a 4.9% surge 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 February 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 25.3% of existing closings, lower than 27.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 10.6% in February from 8.9% a year earlier while REO closings as a percentage of existing home closings sank to 14.7% from 18.5% a year earlier.