In the Modesto, CA market, closings of new homes slid year-over-year in December, but the decline was less than the year-over-year decline in November. New home closings moved from 28 a year earlier to 24 after the figure moved from 25 in November 2014 to 13 in November 2015.
A total of 250 new homes were sold during the 12 months that ended in December, down from 254 for the year that ended in November.
Out of all housing closings, new home closings represented 3.9%. This is down from the 5.2% of closings a year earlier. Following a year-over-year increase in November, closings of new and existing homes also jumped year-over-year in December.
Pricing and Mortgage Trends
The average price of new homes fell by 5.0% year-over-year to $305,167 per unit in December. This decline is a drop off from the 10.6% drop in November from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. The average mortgage size fell to $243,349 in December, marking a 10.4% decline compared with last year. Average mortgage size on new homes went from $261,690 in November 2014 to $253,542 in November 2015.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings rose from no part of all closings in December 2014 to 4.2% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 95.8% of closings from all of closings.
For all new homes sold, the average unit size fell 3.5% year-over-year to 2,019 square feet in December 2015. A decrease in both the average size and price of newly sold homes was also seen in November 2015 when the average size increased 7.2% to 1,933 square feet. This decline was somewhat shallower than the price fall, which also happened in November 2015 when the average size of new homes sold sank 7.2% to 1,933 square feet from a year earlier. The average size of newly sold homes moved from 2,083 square feet in November 2014 to 1,933 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 15.4% of existing home closings, below 27.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.1% in December from 11.7% a year earlier while REO closings as a percentage of existing home closings fell to 9.3% from 16.0% a year earlier.