In the Fresno, CA market, new home closings dropped year-over-year in May, but there were suggestions that the market may be leveling out with a percentage drop less steep than in April 2016. New home closings saw a 14.2% drop from a year earlier to 115. This came on the heels of a 21.9% decline year-over-year in April.
A total of 1,868 new homes were sold during the 12 months that ended in May, down from 1,887 for the year that ended in April.
Out of all housing closings, new home closings accounted for 10.2%. This is a fall 12.4% of closings a year earlier. Closings of new and existing homes climbed year-over-year in May following a decline in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes declined 1.8% year-over-year to $308,649 per unit. This decline compares to a 1.7% gain in April year-over-year.
Average mortgage size on new homes went from $267,318 in May 2015 to $266,621 in May 2016. It went from $275,390 to $273,548 from April 2015 to April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
There was a 22.4% drop year-over-year in the average unit size of newly sold homes to 1,731 square feet in May 2016. In April, the average size of new homes sold went from 2,269 square feet a year earlier to 1,641 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 16.3% of existing home closings, down from 19.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.7% in May from 9.1% a year earlier while REO closings as a percentage of existing home closings dropped to 8.6% from 10.9% a year earlier.