Closings of new homes in the Harrisburg, CA market declined year-over-year in July, but the decline was less than the year-over-year decline in June. New home closings moved from 42 a year earlier to 15 after the figure moved from 54 in June 2015 to 11 in June 2016.
A total of 326 new homes were sold during the 12 months that ended in July, down from 353 for the year that ended in June.
New home closings made up 2.1% of overall housing closings. This is a drop 4.9% of closings a year earlier. After rising year-over-year in June, closings of new and existing homes slid year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes sank 19.7% year-over-year in July to $251,979 per unit. This fall is larger than the 3.5% decline in June from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. Average mortgage size declined by 17.0% from a year earlier, settling at $225,035 in July. Average mortgage size on new homes went from $234,846 in June 2015 to $219,928 in June 2016.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units grew from 26.2% of closings in July 2015 to 60.0% of closings in July 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 40.0% of closings from 73.8% of closings.
The average unit size of newly sold homes sank 27.3% year-over-year to 1,835 square feet in July 2016. The average size of newly sold homes moved from 2,279 square feet in June 2015 to 1,992 square feet in June 2016. A decline was also seen in June 2016 when the average size of new homes sold fell 12.6% to 1,992 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. Combined, foreclosures plus REO closings accounted for 9.5% of existing home closings, below 14.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.0% in July from 4.6% a year earlier while REO closings as a percentage of existing home closings fell to 7.6% from 10.1% a year earlier.