Closings of new homes slid year-over-year in July in the Bakersfield, CA market, a downhill move after a gain in June 2016. There was a 6.4% fall in new home closings from a year earlier. This came after a 1.7% rise year-over-year in June.
A total of 1,723 new homes were sold during the 12 months that ended in July, down from 1,733 for the year that ended in June.
Of the total number of closings, new home closings made up 12.5%. A year ago, 12.0% of total closings were new home closings. After remaining steady in June from a year earlier, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes went from $288,740 in July 2015 to $288,303 in July 2016. This followed a 3.4% drop in June from a year earlier.
The average mortgage size on newly sold homes declined year-over-year in contrast to the average price of new homes. In July 2016, the average mortgage size on newly sold homes saw a 1.5% fall from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 3.9% drop 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 July 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
The average unit size of newly sold homes gained 23.2% year-over-year to 2,610 square feet in July 2016. The average size of newly sold homes moved from 2,171 square feet in June 2015 to 1,801 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline 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 accounted for 19.6% of closings, below 19.8% a year earlier. The percentage of existing home closings involving foreclosures went from 8.3% in July 2015 to 8.9% in July 2016 and REO closings moved from 11.5% of existing home closings in July 2015 to 10.6% in July 2016.