New home closings rose year-over-year in July in the Riverside, CA market, but there were signals the market may be leveling out with a percentage rise shallower than June 2015. Closings rose 44.7% from a year earlier to 573. This was after the housing market saw a 48.4% hike year-over-year in June.
A total of 6,141 new homes were sold during the 12 months that ended in July, up from 5,964 for the year that ended in June.
New home closings accounted for 7.7% of overall housing closings. This is an increase on a percentage basis, as new home closings were 6.2% of total closings a year ago. Following a year-over-year increase in June, closings of new and existing homes also grew year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes was $446,878 per unit in July, up 8.5%from a year earlier. This surge is better than the 2.9% bump in June year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. In July 2015, there was a 9.7% rise in the average mortgage size, reaching $357,076. Average mortgage size jumped 6.4% in June 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 grew from 93.2% of new closings in July 2014 to 94.8% of closings in July 2015. Conversely, the share of new home closings belonging to attached units slid to 5.2% of closings from 6.8% of closings.
For all new homes sold, the average unit size gained 9.3% year-over-year to 2,811 square feet in July 2015. An increase was also seen in June 2015 when the average size of new homes sold grew 8.9% to 2,804 square feet. The average size of newly sold homes moved from 2,576 square feet in June 2014 to 2,804 square feet in June 2015.
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. Out of all existing home closings, foreclosures combined with REO closings made up 14.9% of closings, below 19.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.8% in July from 9.1% a year earlier while REO closings as a percentage of existing home closings declined to 8.2% from 10.3% a year earlier.