New home closings jumped year-over-year in July in the Modesto, CA market, but with a rise less sharp than June 2016, there were suggestions the market may be evening out. New home closings saw a 52.2% boost from a year earlier to 35. This came after a more than twofold hike year-over-year in June.
A total of 347 new homes were sold during the 12 months that ended in July, up from 335 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 5.4%. This is an increase on a percentage basis, as new home closings were 3.2% of total closings a year ago. After rising year-over-year in June, closings of new and existing homes fell year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 3.5% in July to $312,080 per unit. This lift is better than the 2.6% gain in June year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It fell 5.1% in July from a year earlier, reaching $259,631. In June 2016, average mortgage size remained level from a year earlier at $263,655.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings jumped from no part of all closings in July 2015 to 11.4% of closings in July 2016. At the same time, the share belonging to single-family homes dropped to 88.6% of closings from all of closings.
There was a 7.5% fall year-over-year in the average unit size of newly sold homes to 1,905 square feet in July 2016. The average size of newly sold homes moved from 1,895 square feet in June 2015 to 2,018 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 11.6% of existing home closings, below 16.1% a year earlier. The percentage of existing home closings involving foreclosures went from 6.4% in July 2015 to 5.6% in July 2016 and REO closings as a percentage of existing home closings fell to 6.0% from 9.7% a year earlier.