The Riverside, CA market saw a rise in new home closings in September year-over-year, and the market seemed to be suggesting strengthening with a percentage gain more robust than August 2015. New home closings saw a climb of 33.1% from the year earlier to 676. In comparison, new home closings in the same month last year saw a 24.2% jump year-over-year in August.
A total of 6,561 new homes were sold during the 12 months that ended in September, up from 6,393 for the year that ended in August.
New home closings made up 10.7% of overall housing closings. This is a hike from 9.3% of closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also grew year-over-year in September.
Pricing and Mortgage Trends
Average price of newly sold homes had a 4.9% bump year-over-year to $423,817 per unit in September. This lift is smaller than the 5.1% gain in August year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In September 2015, the average mortgage size was $345,656, a 3.7% surge from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 2.5% bump year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 93.1% of new home closings to 92.8% of closings while attached units have gone from 6.9% of closings to 7.2% of closings.
The average unit size of newly sold homes grew 7.8% year-over-year to 2,752 square feet in September 2015. The average size of newly sold homes moved from 2,545 square feet in August 2014 to 2,617 square feet in August 2015. An increase in both the average size and price of newly sold homes was also seen in August 2015 when the average size grew 2.8% to 2,617 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 16.9% of existing home closings, down from 17.9% a year earlier. The percentage of existing home closings involving foreclosures went from 7.6% in September 2014 to 7.7% in September 2015 and REO closings as a percentage of existing home closings declined to 9.2% from 10.3% a year earlier.