In August, there was an increase in closings of new homes in the Modesto, CA market year-over-year, and the increase was greater than July 2015. New home closings moved from 12 a year earlier to 27 after the figure moved from 19 in July 2014 to 23 in July 2015.
A total of 233 new homes were sold during the 12 months that ended in August, up from 218 for the year that ended in July.
New home closings were 27 out of 622 total closings, making up 4.3%. This is up on a percentage basis from 12 of 588 a year earlier. Closings of new and existing homes grew year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $288,763, compared with $312,100 last year. This was on the heels of a 10.9% surge in July year-over-year.
The average mortgage size went down to $256,652 from $277,288 a year earlier. Average mortgage size gained 39.4% in July 2015 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 August 2015.
The average unit size of newly sold homes fell from 2,074 square feet a year earlier to 1,987 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 17.0% of closings, below 18.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.9% in August from 8.3% a year earlier and REO closings moved from 10.6% of existing home closings in August 2014 to 11.1% in August 2015.