Closings of new homes in the Salinas, CA market saw no change year-over-year in July, staying level after a year-over-year increase in June from a year earlier. Closings remained level at 22 from a year earlier after the figure moved from 14 in June 2015 to 19 in June 2016.
A total of 255 new homes were sold during the 12 months that ended in July, equal to the number of new homes sold for the year that ended in June.
Out of all housing closings, new home closings accounted for 6.4%. This is better than the 4.9% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes grew 14.3% year-over-year to $520,250 per unit. This gain compares to a 14.3% fall in June from a year earlier.
There was a lift year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $398,929 in July, marking a 10.8% hike compared with a year earlier. Average mortgage size on new homes went from $453,445 in June 2015 to $391,219 in June 2016.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units rose from no part of closings in July 2015 to 18.2% of closings in July 2016. At the same time, the share belonging to single-family homes dropped to 81.8% of closings from all of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 9.9% of existing home closings, below 10.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.0% in July 2015 to 4.3% in July 2016 and REO closings moved from 6.3% of existing home closings in July 2015 to 5.6% in July 2016.