The Bakersfield, CA market saw a drop in new home closings year-over-year in April, and with a percentage drop steeper than March 2016, there were suggestions the market may be worsening. Closings declined 25.2% from a year earlier to 98. This was after the housing market saw a 19.2% drop year-over-year in March.
A total of 1,732 new homes were sold during the 12 months that ended in April, down from 1,765 for the year that ended in March.
Out of all housing closings, new home closings made up 9.9%. This is down from the a year earlier when new home closings represented 10.9% of total closings. After rising year-over-year in March, closings of new and existing homes declined year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 6.5% in April to $301,477 per unit. This gain follows a move from $286,309 per unit in March 2015 to $287,601 in March 2016.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. It jumped 7.3% in April from a year earlier to $278,618. Average mortgage size went from $259,503 in March 2015 to $259,990 in March 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in April 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
There was a 34.9% gain year-over-year in the average unit size of newly sold homes to 2,881 square feet in April 2016. The average size of newly sold homes moved from 2,130 square feet in March 2015 to 2,386 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 20.2% of existing home closings, below 24.9% a year earlier. The percentage of existing home closings involving foreclosures went from 10.2% in April 2015 to 9.6% in April 2016 and REO closings as a percentage of existing home closings sank to 10.6% from 14.8% a year earlier.