New home closings in the Merced, CA market climbed year-over-year in December, and the increase was greater than November 2015. New home closings moved from 8 a year earlier to 33 after the figure moved from 5 in November 2014 to 20 in November 2015.
A total of 216 new homes were sold during the 12 months that ended in December, up from 191 for the year that ended in November.
New home closings were 33 of the 254 total closings, up on a percentage basis from 8 of 222 a year earlier. Closings of new and existing homes climbed year-over-year in December after also rising in November year-over-year.
Pricing and Mortgage Trends
The average new home price was $306,009, down from $341,875 a year earlier. This came after a 26.2% lift in November year-over-year.
Average mortgage size on newly sold homes saw a decline year-over-year from $318,562 to $258,499. Average mortgage size on new homes went from $254,978 in November 2014 to $266,072 in November 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 22.2% of existing closings, lower than 25.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.1% in December from 9.8% a year earlier while REO closings as a percentage of existing home closings dropped to 14.0% from 15.4% a year earlier.