In the Redding, CA market, closings of new homes dropped year-over-year in May, but the decline was less than the year-over-year decline in April. New home closings moved from 5 a year earlier to 2 after the figure moved from 11 in April 2015 to 1 in April 2016.
New home closings were 2 out of the 233 total closings, a move on a percentage basis from 5 of 277 a year earlier. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $229,750, down from last year's $323,300. This followed a 68.5% gain in April year-over-year.
Average mortgage size on newly sold homes saw a decline year-over-year from $276,456 to $251,187. It went from $279,947 to $278,489 from April 2015 to April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 18.2% of closings, below 24.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 9.5% in May from 11.0% a year earlier while REO closings as a percentage of existing home closings slid to 8.7% from 13.6% a year earlier.