In the Visalia, CA market in March, new home closings declined year-over-year, swinging downward off a year-over-year bump in February 2016. New home closings saw a 19.0% decline from a year earlier to 51. This came on the heels of a 67.6% hike year-over-year in February.
A total of 900 new homes were sold during the 12 months that ended in March, down from 912 for the year that ended in February.
Out of all housing closings, new home closings represented 8.8%. This is down from the a year earlier when new home closings made up 13.7% of total closings. Following a year-over-year increase in February, closings of new and existing homes also grew year-over-year in March.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 5.5% in March to $273,198 per unit. This bump compares to a 10.7% drop in February from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $246,071 in March, marking a 5.4% hike compared with a year earlier. In February 2016, average mortgage size jumped 1.7% 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 March 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
There was a 14.4% decline year-over-year in the average unit size of newly sold homes to 1,639 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to increase in March from a year earlier and stayed a drag on the market. Together, foreclosures plus REO closings accounted for 33.9% of existing home closings, up from 28.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 24.1% in March from 14.6% a year earlier while REO closings as a percentage of existing home closings slid to 9.8% from 14.3% a year earlier.