In March, there was an increase in closings of new homes in the Salinas, CA market year-over-year, but the increase was less than February 2016. New home closings moved from 16 a year earlier to 19 after the figure moved from 10 in February 2015 to 20 in February 2016.
A total of 255 new homes were sold during the 12 months that ended in March, up from 252 for the year that ended in February.
Of 305 total closings, 19 were of new homes. This marks a rise from 4.8% of total closings a year earlier. After rising year-over-year in February, closings of new and existing homes slid year-over-year in March.
Pricing and Mortgage Trends
The average price of newly sold homes fell 42.5% year-over-year in March to $501,979 per unit. This drop compares to a 5.9% rise in February year-over-year.
In March 2016, average mortgage size on new homes went from $411,147 in March 2015 to $412,763 in March 2016. Average mortgage size on new homes went from $337,529 in February 2015 to $438,928 in February 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units grew from no part of closings in March 2015 to 26.3% of closings in March 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 73.7% of closings from all of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 13.6% of existing home closings, below 18.4% a year earlier. The percentage of existing home closings involving foreclosures went from 9.2% in March 2015 to 8.4% in March 2016 and REO closings as a percentage of existing home closings slid to 5.2% from 9.2% a year earlier.