New home closings increased year-over-year in May in the El Centro, CA market, rebounding from a year-over-year decline in April 2016. New home closings moved from 9 a year earlier to 14 after the figure moved from 14 in April 2015 to 12 in April 2016.

A total of 137 new homes were sold during the 12 months that ended in May, up from 132 for the year that ended in April.

New home closings were 14 of the 136 total closings, up on a percentage basis from 9 of 112 a year earlier. Closings of new and existing homes rose year-over-year in May after also rising in April year-over-year.

Pricing and Mortgage Trends

The average new home value went from $265,556 last year to $316,786. This followed a 1.8% gain in April year-over-year.

The average mortgage size on new homes was $294,795, up from $249,815. Average mortgage size on new homes went from $278,144 in April 2015 to $285,106 in April 2016.

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.

Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.4% of existing home closings, below 20.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.1% in May from 12.6% a year earlier while REO closings as a percentage of existing home closings gained to 12.3% from 7.8%.

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