The Vallejo, CA market saw an increase in closings of new homes in July year-over-year, but there were signs the market may be evening out with a percentage gain shallower than June 2015. New home closings saw a 78.0% climb from a year earlier to 73. This came after a more than twofold hike year-over-year in June.
A total of 573 new homes were sold during the 12 months that ended in July, up from 541 for the year that ended in June.
Out of all housing closings, new home closings made up 10.2%. This is an increase on a percentage basis, as new home closings were 6.5% of total closings a year ago. Following a year-over-year increase in June, closings of new and existing homes also rose year-over-year in July.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 4.1% year-over-year in July to $432,097 per unit. This rise is smaller than the 12.8% hike in June year-over-year.
In July 2015, average mortgage size on newly sold homes moved from $364,230 to $362,265 from July 2014. In June 2015, average mortgage size on newly sold homes saw a 12.5% bump year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 97.6% in July 2014 to all of closings in July 2015. At the same time, the share of new home closings belonging to attached units slid to no part of closings from 2.4% of closings.
The average unit size of newly sold homes sank 5.1% year-over-year to 2,041 square feet in July 2015. For newly sold homes, an average size drop contrasting with an average price boost was also seen in June 2015 when the average size of newly sold homes slid 19.3% to 1,691 square feet. The average size of newly sold homes moved from 2,096 square feet in June 2014 to 1,691 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 16.8% of existing home closings, down from 17.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.3% in July from 8.7% a year earlier while REO closings as a percentage of existing home closings grew to 9.5% from 8.3%.