In the Bakersfield, CA market, closings of new homes slid year-over-year in May, but the percentage fall narrowed from that of April 2016, suggesting that the market may be leveling out. Closings slid 1.5% from a year earlier to 134. This was after the housing market saw a 25.2% fall year-over-year in April.
A total of 1,730 new homes were sold during the 12 months that ended in May, down from 1,732 for the year that ended in April.
Of the total number of closings, new home closings made up 11.7%. A year ago, 12.2% of total closings were new home closings. After dropping in April from a year earlier, closings of new and existing homes jumped year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes was $299,240 per unit in May, up 3.3%from a year earlier. This hike is smaller than the 6.5% surge in April year-over-year.
Average mortgage size on new homes climbed year-over-year along with new home prices. The average mortgage size saw a 2.0% hike year-over-year to $273,930 in May. In April 2016, average mortgage size jumped 7.3% 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 May 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes gained 6.5% year-over-year to 2,271 square feet in May 2016. The average size of newly sold homes moved from 2,135 square feet in April 2015 to 2,881 square feet in April 2016. An increase was also seen in April 2016 when the average size of new homes sold increased 34.9% to 2,881 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 19.6% of existing home closings, up from 18.1% a year earlier. The percentage of existing home closings involving foreclosures went from 8.8% in May 2015 to 9.3% in May 2016 and REO closings moved from 9.4% of existing home closings in May 2015 to 10.3% in May 2016.