The Modesto, CA market saw an increase in closings of new homes in April year-over-year, but the increased on a percentage basis less sharlpy than March 2016, showing signs of market stabilization. There was a 16.7% rise in new home closings from a year earlier. This was after the housing market saw a 42.1% hike year-over-year in March.
A total of 286 new homes were sold during the 12 months that ended in April, up from 282 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 5.0%. This is a rise from 3.9% of closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes fell year-over-year in April.
Pricing and Mortgage Trends
In April, the average price of newly sold homes increased year-over-year to $331,146 per unit, a 3.4% boost. This boost compares to a 1.1% fall in March from a year earlier.
For newly sold homes, the average mortgage size grew year-over-year along with new home prices. Average mortgage size rose 2.0% to $271,544 in April from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 2.8% bump year-over-year 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 April 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes declined 12.5% year-over-year to 1,851 square feet in April 2016. In March, the average size of new homes sold went from 2,057 square feet a year earlier to 1,930 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 14.4% of existing closings, lower than 22.5% a year earlier. The percentage of existing home closings involving foreclosures went from 6.7% in April 2015 to 6.9% in April 2016 and REO closings as a percentage of existing home closings sank to 7.5% from 15.9% a year earlier.