In the Visalia, CA market in January, new home closings climbed year-over-year, and the percentage rise, which was better than December 2015, suggested the market may be improving. Closings increased 37.1% from a year earlier to 48. This came after a 1.6% hike year-over-year in December.
A total of 888 new homes were sold during the 12 months that ended in January, up from 875 for the year that ended in December.
Out of all housing closings, new home closings represented 14.9%. This marks a rise from 11.7% of total closings a year earlier. Following a year-over-year increase in December, closings of new and existing homes also gained year-over-year in January.
Pricing and Mortgage Trends
In January, there was a 11.4% lift year-over-year in the average price of newly sold homes, reaching $269,763 per unit. This boost is better than the 5.0% lift in December year-over-year.
Average mortgage size on new homes increased year-over-year along with new home prices. The average mortgage size rose to $232,060 in January, marking a 4.9% hike compared with a year earlier. In December 2015, average mortgage size rose 8.6% 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 January 2016. Single-family home closings have made up all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size increased more than twofold year-over-year to 4,205 square feet in January 2016. In December, the average size of new homes sold went from 1,831 square feet a year earlier to 1,436 square feet.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings made up 27.0% of existing home closings, below 30.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.5% in January from 11.3% a year earlier while REO closings as a percentage of existing home closings fell to 13.5% from 19.6% a year earlier.