In December, closings of new homes rose year-over-year in the Vallejo, CA market, but the percentage rise was less pronounced than November 2015, indicating the market may be leveling out. There was a 81.5% jump in new home closings from a year earlier. This came on the heels of a more than twofold rise year-over-year in November.
A total of 782 new homes were sold during the 12 months that ended in December, up from 729 for the year that ended in November.
New home closings made up 17.5% of overall housing closings. This marks a rise from 12.2% of total closings a year earlier. For new and existing homes, closings rose year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 22.9% in December to $522,640 per unit. This boost is better than the 12.5% hike in November year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. In December 2015, there was a 20.9% gain in the average mortgage size, reaching $416,973. Average mortgage size grew 9.8% in November 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 96.9% of new closings in December 2014 to all of closings in December 2015. At the same time, the share of new home closings belonging to attached units sank to no part of closings from 3.1% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 17.1% of closings, below 22.1% a year earlier. The percentage of existing home closings involving foreclosures went from 9.2% in December 2014 to 8.5% in December 2015 and REO closings as a percentage of existing home closings slid to 8.6% from 12.8% a year earlier.