In June, closings of new homes climbed year-over-year in the Vallejo, CA market, but as the percentage grew less than May 2016, the market seemed to show signs of leveling. There was a 10.3% jump in new home closings from a year earlier. This followed a 82.5% hike 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.
Of 675 total closings, 86 were of new homes. This marks a rise from 10.3% of total closings a year earlier. 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
The average price of newly sold homes increased year-over-year 13.6% in June to $521,635 per unit. This boost is an improvement over the 11.4% hike in May year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, the average mortgage size on newly sold homes saw a 11.8% hike from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 5.6% rise year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes rose from 94.9% in June 2015 to 98.8% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings sank to 1.2% of closings from 5.1% of closings.
There was a 7.3% fall year-over-year in the average unit size of newly sold homes 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 look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 12.6% of existing home closings, below 14.2% a year earlier. The percentage of existing home closings involving foreclosures slid 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.