The Visalia, CA market saw a drop in new home closings year-over-year in April, and there were hints of weakening market conditions with a percentage drop steeper than that of March 2016. There was a 21.7% drop in new home closings from a year earlier. This was after the housing market saw a 19.0% fall year-over-year in March.
A total of 885 new homes were sold during the 12 months that ended in April, down from 900 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 10.2%. This is down from the 13.0% of closings a year earlier. After new and existing closings rose in March year-over-year, they stayed level in April.
Pricing and Mortgage Trends
In April, the average per-unit price of new homes fell by 4.9% year-over-year to $236,196. This fall compares to a 5.5% bump in March year-over-year.
Average mortgage size on new homes saw a drop year-over-year in contrast to prices of new homes. Average mortgage size dropped 3.0% to $229,383 in April from a year earlier. In March 2016, average mortgage size grew 5.4% from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in April 2016. Single-family home closings have accounted for all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size fell 24.0% year-over-year to 1,516 square feet in April 2016. In March, the average size of new homes sold went from 1,914 square feet a year earlier to 1,639 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 15.9% of existing closings, lower than 23.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.1% in April from 10.8% a year earlier while REO closings as a percentage of existing home closings dropped to 8.8% from 12.8% a year earlier.