Closings of new homes dropped year-over-year in April in the Fresno, CA market, and the percentage fall was steeper than March 2016, giving suggestion the market may be worsening. New home closings saw a drop of 21.9% from the year earlier to 118. This came on the heels of a 2.7% decline year-over-year in March.
A total of 1,887 new homes were sold during the 12 months that ended in April, down from 1,920 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 11.2%. This is down from the a year earlier when new home closings made up 13.5% of total closings. Closings of new and existing homes saw a drop year-over-year in April after remaining steady in March year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $319,644 in April, up 1.7% from last year. This boost is smaller than the 5.0% hike in March year-over-year.
Average mortgage size on new homes went from $275,390 in April 2015 to $273,548 in April 2016. In March 2016, average mortgage size on newly sold homes saw a 11.4% surge year-over-year 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 April 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
There was a 27.7% decline year-over-year in the average unit size of newly sold homes to 1,641 square feet in April 2016. This drop was opposite the price bump, a pattern also seen in March 2016 when the average size of newly sold homes declined 16.9% to 1,857 square feet. In March, the average size of new homes sold went from 2,235 square feet a year earlier to 1,857 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 17.7% of existing home closings, below 22.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 7.4% in April from 10.4% a year earlier while REO closings as a percentage of existing home closings slid to 10.2% from 12.1% a year earlier.