In the Hanford, CA market, closings of new homes declined year-over-year in July, a move downward following a gain in June 2016. Closings declined 11.4% from a year earlier to 31. This was after the housing market saw a more than twofold boost year-over-year in June.
A total of 325 new homes were sold during the 12 months that ended in July, down from 329 for the year that ended in June.
New home closings represented 23.1% of overall housing closings. New home closings were 22.2% of overall closings last year. Following a year-over-year increase in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
In July, there was a 20.6% lift year-over-year in the average price of newly sold homes, reaching $289,481 per unit. This bump is smaller than the 27.4% gain in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2016, the average mortgage size was $272,629, a 20.7% boost from a year earlier. In June 2016, average mortgage size climbed 4.1% 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 represented all of new home closings while attached unit closings have accounted for no part of closings.
There was a 6.4% drop year-over-year in the average unit size of newly sold homes to 1,770 square feet in July 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. Foreclosures and REO closings, taken together, made up 20.4% of existing closings, lower than 23.6% a year earlier. The percentage of existing home closings involving foreclosures went from 9.8% in July 2015 to 10.7% in July 2016 and REO closings as a percentage of existing home closings dropped to 9.7% from 13.8% a year earlier.