Closings of new homes sank year-over-year in November in the Riverside, CA market, curving down after an increase in October 2015. There was a 6.4% fall in new home closings from a year earlier. This followed a 32.1% hike year-over-year in October.
A total of 6,680 new homes were sold during the 12 months that ended in November, down from 6,722 for the year that ended in October.
As a percentage of overall housing closings, new home closings made up 11.6%. This is down from the 13.1% of closings a year earlier. Closings of new and existing homes gained year-over-year in November after also rising in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in November to $451,902 per unit, a rise of 7.5%. This hike is smaller than the 10.4% surge in October year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. In November 2015, average mortgage size rose 7.1% from a year earlier to $359,218. In October 2015, average mortgage size on newly sold homes saw a 7.1% hike year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 89.8% of new closings in November 2014 to 93.0% of closings in November 2015. Conversely, the share of new home closings belonging to attached units slid to 7.0% of closings from 10.2% of closings.
The average unit size of newly sold homes jumped 2.5% year-over-year to 2,665 square feet in November 2015. An increase in both the average size and price of newly sold homes was also seen in October 2015 when the average size gained 8.3% to 2,713 square feet. In October, the average size of new homes sold went from 2,506 square feet a year earlier to 2,713 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.1% of existing home closings, below 22.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.8% in November from 10.7% a year earlier while REO closings as a percentage of existing home closings fell to 8.3% from 11.4% a year earlier.