There was an increase in closings of new homes in the Merced, CA market in April year-over-year, but the increase was less than March 2016. New home closings moved from 10 a year earlier to 17 after the figure moved from 15 in March 2015 to 27 in March 2016.
A total of 265 new homes were sold during the 12 months that ended in April, up from 258 for the year that ended in March.
New home closings were 17 of the 195 total closings, up on a percentage basis from 10 of 166 a year earlier. Following a year-over-year increase in March, closings of new and existing homes also climbed year-over-year in April.
Pricing and Mortgage Trends
The average new home price was $294,506, up from $284,950 a year earlier. This followed a 1.7% drop in March from a year earlier.
Average mortgage size on new homes rose from $255,618 to $259,784. In March 2016, average mortgage size declined 9.8% 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 April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 20.2% of existing home closings, down from 20.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 9.6% in April from 8.3% a year earlier while REO closings as a percentage of existing home closings fell to 10.7% from 12.2% a year earlier.