In the Merced, CA market, new home closings climbed year-over-year in August, and the increase was greater than July 2015. New home closings moved from 2 a year earlier to 23 after the figure moved from 3 in July 2014 to 19 in July 2015.
A total of 133 new homes were sold during the 12 months that ended in August, up from 112 for the year that ended in July.
New home closings were 23 out of 256 total closings, making up 9.0%. This is up on a percentage basis from 2 of 247 a year earlier. Following a fall in July year-over-year, closings of new and existing homes grew year-over-year in August.
Pricing and Mortgage Trends
The average price of new homes rose to $289,548 from last year's $239,500. This was on the heels of a 20.2% drop in July from a year earlier.
Average mortgage size on new homes rose from $213,822 to $246,703. Average mortgage size on new homes went from $417,000 in July 2014 to $271,429 in July 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 21.0% of existing home closings, below 23.3% a year earlier. The percentage of existing home closings involving foreclosures went from 9.4% in August 2014 to 9.9% in August 2015 and REO closings as a percentage of existing home closings fell to 11.2% from 13.9% a year earlier.