New home closings sank year-over-year in April in the Fresno, CA market, and the percentage fall, which was steeper than March 2016, gave hints of weakening market conditions. There was a 21.9% decline in new home closings from a year earlier. 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.
Out of all housing closings, new home closings accounted for 11.2%. This is a drop 13.5% of closings a year earlier. Closings of new and existing homes saw a decline year-over-year in April after remaining steady in March year-over-year.
Pricing and Mortgage Trends
In April, the average value of new homes saw a 1.7% boost year-over-year as it grew to $319,644 per unit. This gain is smaller than the 5.0% hike in March year-over-year.
In April 2016, average mortgage size on newly sold homes moved from $275,390 to $273,548 from April 2015. Average mortgage size climbed 11.4% in March 2016 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 accounted for all of new home closings while attached unit closings have made up no part of closings.
For all new homes sold, the average unit size slid 27.7% year-over-year to 1,641 square feet in April 2016. This decline was opposite the price boost, 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 decline from a year earlier in April, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 17.7% of existing closings, lower than 22.5% a year earlier. The percentage of existing home closings involving foreclosures fell 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.