There was an increase in closings of new homes in the Vallejo, CA market in June year-over-year, but the market seemed to show signs of stabilizing as the percentage jumped was less than in May 2016. There was a 10.3% hike in new home closings from a year earlier. This came on the heels of a 82.5% climb year-over-year in May.
A total of 942 new homes were sold during the 12 months that ended in June, up from 934 for the year that ended in May.
New home closings made up 12.7% of overall housing closings. This is an increase on a percentage basis, as new home closings were 10.3% of total closings a year ago. Closings of new and existing homes saw a decline year-over-year in June after remaining steady in May year-over-year.
Pricing and Mortgage Trends
In June, the average price of newly sold homes grew year-over-year to $521,635 per unit, a 13.6% gain. This bump is an improvement over the 11.4% lift in May year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. In June 2016, the average mortgage size was $428,220, a 11.8% boost from a year earlier. Average mortgage size gained 5.6% in May 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings rose from 94.9% of new closings in June 2015 to 98.8% of closings in June 2016. Conversely, the share of new home closings belonging to attached units fell to 1.2% of closings from 5.1% of closings.
For all new homes sold, the average unit size sank 7.3% year-over-year to 2,153 square feet in June 2016. In May, the average size of new homes sold went from 2,283 square feet a year earlier to 2,440 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. Together, foreclosures plus REO closings accounted for 12.6% of existing home closings, down from 14.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.1% in June from 6.5% a year earlier and REO closings moved from 7.7% of existing home closings in June 2015 to 7.5% in June 2016.