In the Fresno, CA market, new home closings declined year-over-year in September, and there were suggestions of weakening market conditions with a percentage fall steeper than that of August 2016. Closings slumped 26.0% from a year earlier to 134. This came on the heels of a 8.3% drop year-over-year in August.
A total of 1,731 new homes were sold during the 12 months that ended in September, down from 1,778 for the year that ended in August.
Out of all housing closings, new home closings made up 11.8%. This is down from the a year earlier when new home closings accounted for 15.6% of total closings. Following a year-over-year increase in August, closings of new and existing homes dropped year-over-year in September.
Pricing and Mortgage Trends
From September 2015 to September 2016, the average price of newly sold homes went from $336,932 to $339,225. This came after a 5.9% fall in August from a year earlier.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. It declined to $288,610 in September, a 1.9% fall. Average mortgage size fell 3.9% in August 2016 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 September 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
The average unit size of newly sold homes grew 21.3% year-over-year to 2,584 square feet in September 2016. The average size of newly sold homes moved from 2,172 square feet in August 2015 to 1,966 square feet in August 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 16.0% of closings, below 19.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.5% in September from 9.9% a year earlier while REO closings as a percentage of existing home closings dropped to 8.5% from 9.7% a year earlier.