In June, the Fresno, CA market saw a fall year-over-year in new home closings, and the market seemed to be worsening in light of the percentage drop steeper than May 2016. New home closings saw a 21.4% drop from a year earlier to 132. This followed a 11.9% decline year-over-year in May.
A total of 1,840 new homes were sold during the 12 months that ended in June, down from 1,876 for the year that ended in May.
Out of all housing closings, new home closings represented 10.7%. This is down from the 13.1% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 7.2% in June to $324,729 per unit. This bump compares to a 3.0% fall in May from a year earlier.
The average mortgage size on newly sold homes saw a surge year-over-year along with new home prices. In June 2016, there was a 9.4% boost in the average mortgage size, reaching $280,891. Average mortgage size dropped 1.2% in May 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 June 2016. Single-family home closings have represented all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size sank 1.2% year-over-year to 2,170 square feet in June 2016. In May, the average size of new homes sold went from 2,165 square feet a year earlier to 2,317 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 14.3% of existing closings, lower than 18.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 6.3% in June from 9.3% a year earlier while REO closings as a percentage of existing home closings declined to 8.1% from 9.6% a year earlier.