In the Riverside, CA market, new home closings slid year-over-year in July, sliding down after a lift in June 2016. There was a 10.4% decline in new home closings from a year earlier. This followed a 2.5% boost year-over-year in June.
A total of 7,351 new homes were sold during the 12 months that ended in July, down from 7,411 for the year that ended in June.
Of the total number of closings, new home closings made up 8.3%. As a part of the whole, new home closings were 8.1% a year earlier. Following a year-over-year decline in June, closings of new and existing homes also fell year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes was $455,135 per unit in July, up 1.2%from a year earlier. This hike is smaller than the 1.9% lift in June year-over-year.
For newly sold homes, the average mortgage size grew year-over-year along with new home prices. Average mortgage size climbed 2.7% to $369,026 in July from a year earlier. Average mortgage size increased 2.3% in June 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units gained from 5.0% of closings in July 2015 to 13.1% of closings in July 2016. At the same time, the share belonging to single-family homes dropped to 86.9% of closings from 95.0% of closings.
There was a 2.4% fall year-over-year in the average unit size of newly sold homes to 2,548 square feet in July 2016. For newly sold homes, an average size drop contrasting with an average price lift was also seen in June 2016 when the average size of newly sold homes fell 1.7% to 2,619 square feet. The average size of newly sold homes moved from 2,663 square feet in June 2015 to 2,619 square feet in June 2016.
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. Foreclosures and REO closings, taken together, represented 13.7% of existing closings, lower than 15.6% a year earlier. The percentage of existing home closings involving foreclosures went from 7.0% in July 2015 to 6.7% in July 2016 and REO closings as a percentage of existing home closings declined to 7.0% from 8.7% a year earlier.