Closings of new homes fell year-over-year in July in the Fresno, CA market, but compared with June 2016, the percentage decline was less steep, hinting the market may be strengthening. Closings declined 19.6% from a year earlier to 135. In comparison, new home closings in the same month last year saw a 21.4% decline year-over-year in June.
A total of 1,809 new homes were sold during the 12 months that ended in July, down from 1,842 for the year that ended in June.
Out of all housing closings, new home closings represented 11.9%. This is a decline 14.3% of closings a year earlier. For new and existing homes, closings sank in July after also declining in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 2.5% bump year-over-year in July to $324,434 per unit. This gain is smaller than the 7.2% boost in June year-over-year.
Average mortgage size on new homes was $282,259 in July, same as a year earlier. In June 2016, average mortgage size increased 9.4% 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 made up no part of closings.
For all new homes sold, the average unit size rose 4.2% year-over-year to 2,266 square feet in July 2016. In June, the average size of new homes sold went from 2,197 square feet a year earlier to 2,170 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 17.0% of existing home closings, down from 19.3% a year earlier. The percentage of existing home closings involving foreclosures went from 9.2% in July 2015 to 9.0% in July 2016 and REO closings as a percentage of existing home closings declined to 8.0% from 10.2% a year earlier.