In July, closings of new homes in the Bakersfield, CA market gained year-over-year, but the percentage boost was not as steep as June 2015, giving suggestions of market stabilizing. New home closings saw a boost of 21.3% from the year earlier to 148. This came after a 44.4% boost year-over-year in June.
A total of 1,578 new homes were sold during the 12 months that ended in July, up from 1,552 for the year that ended in June.
Out of all housing closings, new home closings accounted for 11.5%. This marks a rise from 10.0% of total closings a year earlier. For new and existing homes, closings increased year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 3.3% in July to $291,977 per unit. This rise is an improvement over the 1.4% boost in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. It grew 3.3% in July from a year earlier to $265,586. In June 2015, average mortgage size on newly sold homes saw a 1.4% lift year-over-year 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 made up all of new home closings while attached unit closings have accounted for no part of closings.
There was a 15.2% gain year-over-year in the average unit size of newly sold homes to 1,920 square feet in July 2015. In June, the average size of new homes sold went from 1,871 square feet a year earlier to 2,095 square feet. An increase was also seen in June 2015 when the average size of new homes sold increased 12.0% to 2,095 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 19.3% of existing closings, lower than 26.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 8.5% in July from 10.5% a year earlier while REO closings as a percentage of existing home closings dropped to 10.8% from 16.4% a year earlier.