In June, the Stockton, CA market saw a drop year-over-year in new home closings, a downhill move after a bump in May 2016. New home closings saw a 6.1% decline from a year earlier to 124. This came after a 8.6% hike year-over-year in May.
A total of 1,481 new homes were sold during the 12 months that ended in June, down from 1,489 for the year that ended in May.
New home closings made up 12.8% of overall housing closings. A year ago, new home closings accounted for 12.4%. Closings of new and existing homes fell year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $480,006 per unit in June, up 12.1%from a year earlier. This boost is better than the 6.1% surge in May year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, average mortgage size rose 10.7% from a year earlier to $383,258. Average mortgage size increased 1.4% in May 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 climbed from 2.3% of closings in June 2015 to 7.3% of closings in June 2016. At the same time, the share belonging to single-family homes sank to 92.7% of closings from 97.7% of closings.
There was a 6.4% decline year-over-year in the average unit size of newly sold homes to 2,354 square feet in June 2016. For newly sold homes, an average size fall contrasting with an average price hike was also seen in May 2016 when the average size of newly sold homes declined 2.2% to 2,502 square feet. In May, the average size of new homes sold went from 2,559 square feet a year earlier to 2,502 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 11.6% of existing closings, lower than 16.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.8% in June from 7.2% a year earlier while REO closings as a percentage of existing home closings fell to 6.7% from 9.5% a year earlier.