In the Modesto, CA market, new home closings jumped year-over-year in May, and the percentage lift that was sharper than April 2016 seems to indicate improving market conditions. New home closings saw a hike of 25.0% from the year earlier to 20. This followed a 20.8% hike year-over-year in April.
A total of 294 new homes were sold during the 12 months that ended in May, up from 290 for the year that ended in April.
Of 532 total closings, 20 were of new homes. This is a bump from 2.2% of closings a year earlier. For new and existing homes, closings sank in May after also declining in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes grew 9.3% year-over-year to $315,250 per unit. This rise is an improvement over the 2.2% hike in April year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. In May 2016, the average mortgage size was $288,608, up 16.7% from a year earlier. Average mortgage size went from $266,342 in April 2015 to $263,846 in 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.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 14.1% of closings, below 18.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.6% in May from 8.0% a year earlier while REO closings as a percentage of existing home closings slid to 7.4% from 10.0% a year earlier.