In the Riverside, CA market, closings of new homes jumped year-over-year in December, moving up after a fall in November 2015. New home closings saw a climb of 24.9% from the year earlier to 808. This came after a 3.5% drop year-over-year in November.
A total of 6,927 new homes were sold during the 12 months that ended in December, up from 6,766 for the year that ended in November.
New home closings represented 12.7% of overall housing closings. This is better than the 11.0% of closings a year earlier. Following a year-over-year increase in November, closings of new and existing homes also grew year-over-year in December.
Pricing and Mortgage Trends
In December, the average value of new homes saw a 8.9% surge year-over-year as it grew to $448,691 per unit. This gain is better than the 5.9% bump in November year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. Average mortgage size gained 8.0% to $360,501 in December from a year earlier. In November 2015, average mortgage size jumped 6.5% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units climbed from 7.1% of closings in December 2014 to 10.6% of closings in December 2015. At the same time, the share belonging to single-family homes dropped to 89.4% of closings from 92.9% of closings.
For all new homes sold, the average unit size slid 1.4% year-over-year to 2,588 square feet in December 2015. In November, the average size of new homes sold went from 2,601 square feet a year earlier to 2,653 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 16.8% of existing home closings, down from 21.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.0% in December from 10.3% a year earlier while REO closings as a percentage of existing home closings sank to 8.8% from 10.7% a year earlier.