Closings of new homes in the Vallejo, CA market grew year-over-year in August, and the percentage gain was sharper than July 2015, hinting that the market may be strengthening. New home closings saw a 83.8% boost from a year earlier to 68. In comparison, new home closings in the same month last year saw a 78.0% hike year-over-year in July.
A total of 607 new homes were sold during the 12 months that ended in August, up from 576 for the year that ended in July.
New home closings represented 10.1% of overall housing closings. This is a bump from 6.1% of closings a year earlier. For new and existing homes, closings jumped year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 13.2% in August to $453,096 per unit. This surge is an improvement over the 4.1% lift in July year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. In August 2015, there was a 10.7% gain in the average mortgage size, reaching $401,104. It went from $364,230 to $362,265 from July 2014 to July 2015.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 97.3% of new closings in August 2014 to all of closings in August 2015. Conversely, the share of new home closings belonging to attached units dropped to no part of closings from 2.7% of closings.
There was a 39.8% drop year-over-year in the average unit size of newly sold homes to 1,287 square feet in August 2015. This decline was opposite the price lift, a pattern also seen in July 2015 when the average size of newly sold homes declined 5.1% to 2,041 square feet. In July, the average size of new homes sold went from 2,150 square feet a year earlier to 2,041 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 15.4% of closings, below 22.5% a year earlier. The percentage of existing home closings involving foreclosures stayed at 6.4% of closings in August from a year earlier while REO closings as a percentage of existing home closings dropped to 9.0% from 16.0% a year earlier.