In the Modesto, CA market, closings of new homes climbed year-over-year in July, but as the percentage climbed less than June 2015, the market seemed to show signs of leveling. There was a 15.8% rise in new home closings from a year earlier. This was after the housing market saw a 50.0% boost year-over-year in June.
A total of 216 new homes were sold during the 12 months that ended in July, up from 213 for the year that ended in June.
New home closings, which made up 3.1% of overall closings, were relatively stable compared with a year earlier. Closings of new and existing homes grew year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 12.6% in July to $306,000 per unit. This boost compares to a 12.4% fall in June from a year earlier.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. It increased 42.3% in July from a year earlier to $279,156. In June 2015, average mortgage size rose 2.0% from a year earlier.
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 represented all of new home closings while attached unit closings have accounted for no part of closings.
The average unit size of newly sold homes rose 3.9% year-over-year to 2,084 square feet in July 2015. In June, the average size of new homes sold went from 2,093 square feet a year earlier to 1,814 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 15.9% of existing home closings, down from 22.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.3% in July from 11.4% a year earlier while REO closings as a percentage of existing home closings dropped to 9.5% from 10.8% a year earlier.