Closings of new homes in the Harrisburg, CA market slid year-over-year in May, but with a percentage decline not as steep as April 2016, there are hints that the market may be leveling out. New home closings saw a 66.7% fall from a year earlier to 16. This was after the housing market saw a 69.8% fall year-over-year in April.
A total of 385 new homes were sold during the 12 months that ended in May, down from 417 for the year that ended in April.
Out of all housing closings, new home closings accounted for 2.0%. This is down from the 6.3% of closings a year earlier. Following a fall in April year-over-year, closings of new and existing homes climbed year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes fell year-over-year to $256,626 per unit, marking a 12.1% decline from the year-earlier figure. This fall is larger than the 6.0% decline in April from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It slid 9.1% in May from a year earlier to $216,480. In April 2016, average mortgage size gained 5.7% from a year earlier.
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. The share of new home closings belonging to attached units gained from 31.2% of closings in May 2015 to 81.2% of closings in May 2016. At the same time, the share belonging to single-family homes declined to 18.8% of closings from 68.8% of closings.
The average unit size of newly sold homes sank 9.4% year-over-year to 2,064 square feet in May 2016. The average size of newly sold homes moved from 2,372 square feet in April 2015 to 2,295 square feet in April 2016. The decline in size was less sharp than the drop in average price of newly sold homes, making the movement similar to April 2016 when the average size saw a 3.2% sank to 2,295 square feet from a year earlier. A decrease in both the average size and price of newly sold homes was also seen in April 2016 when the average size increased 3.2% to 2,295 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 18.9% of existing home closings, higher than 16.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 10.4% in May from 8.1% a year earlier and REO closings moved from 8.4% of existing home closings in May 2015 to 8.5% in May 2016.