In the Chico, CA market, closings of new homes declined year-over-year in September, and the decline was by a larger percentage than the August 2015. New home closings moved from 20 a year earlier to 7 after the figure moved from 14 in August 2014 to 9 in August 2015.
A total of 134 new homes were sold during the 12 months that ended in September, down from 147 for the year that ended in August.
New home closings represented 7 out of the 309 total closings, which is a smaller percentage than the 20 of 283 total closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
The average price of new homes was $388,286, an increase from $306,300 a year earlier. This came after a 12.8% boost in August year-over-year.
Average mortgage size on new homes rose from $250,055 to $291,575. Average mortgage size on new homes went from $260,607 in August 2014 to $264,199 in August 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 September 2015.
The average unit size of newly sold homes fell from 1,778 square feet a year earlier to 1,659 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 16.2% of existing home closings, down from 20.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.6% in September from 9.9% a year earlier while REO closings as a percentage of existing home closings dropped to 7.6% from 11.0% a year earlier.