There was an increase in closings of new homes in the Salinas, CA market in June year-over-year, rebounding from a year-over-year decline in May 2016. New home closings moved from 14 a year earlier to 19 after the figure moved from 18 in May 2015 to 17 in May 2016.
A total of 255 new homes were sold during the 12 months that ended in June, up from 250 for the year that ended in May.
New home closings were 19 of the 384 total closings, up on a percentage basis from 14 of 358 a year earlier. Following a drop in May year-over-year, closings of new and existing homes grew year-over-year in June.
Pricing and Mortgage Trends
The average new home price was $455,321, down from $531,393 a year earlier. This came after a 3.3% decline in May from a year earlier.
Average mortgage size on new homes fell from $453,445 to $391,219. Average mortgage size sank 8.5% in May 2016 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 June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 12.1% of existing closings, lower than 14.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.8% in June from 6.4% a year earlier and REO closings moved from 8.4% of existing home closings in June 2015 to 8.2% in June 2016.