The Visalia, CA market saw an increase in closings of new homes in July year-over-year, and the percentage rise was higher than June 2015, implying the market may be improving. There was a 71.2% boost in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 54.7% rise year-over-year in June.
A total of 774 new homes were sold during the 12 months that ended in July, up from 737 for the year that ended in June.
New home closings represented 16.2% of overall housing closings. This is an increase on a percentage basis, as new home closings were 9.8% of total closings a year ago. For new and existing homes, closings climbed year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average per-unit value of new homes fell year-over-year to $235,671 in July, a decline of 4.5% from a year earlier. This decline is a drop off from the 6.8% drop in June from a year earlier.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. It slid 3.1% in July from a year earlier to $223,742. Average mortgage size went from $224,993 in June 2014 to $225,952 in June 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 July 2015. 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 declined 2.4% year-over-year to 1,525 square feet in July 2015. The average size of newly sold homes moved from 1,606 square feet in June 2014 to 2,621 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 24.2% of existing home closings, down from 26.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.5% in July from 14.4% a year earlier while REO closings as a percentage of existing home closings gained to 14.7% from 11.9%.