In the Hanford, CA market in May, closings of new homes jumped year-over-year, and with a stronger gain than April 2016, there are signals the market may be bolstering. New home closings saw a hike of more than twofold from the year earlier to 35. This came after a 26.7% jump year-over-year in April.
A total of 303 new homes were sold during the 12 months that ended in May, up from 283 for the year that ended in April.
Of 148 total closings, 35 were of new homes. This marks a rise from 11.4% of total closings a year earlier. Closings of new and existing homes increased year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 26.2% boost year-over-year in May to $283,594 per unit. This lift is higher than the 1.5% hike in April year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. In May 2016, there was a 17.8% hike in the average mortgage size, reaching $253,952. In April 2016, average mortgage size sank 4.3% 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 May 2016. Single-family home closings have represented all of new home closings while attached unit closings have made up no part of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 16.8% of closings, below 23.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.1% in May from 12.8% a year earlier while REO closings as a percentage of existing home closings declined to 9.7% from 11.1% a year earlier.