The Riverside, CA market saw an increase in closings of new homes in September year-over-year, and the market seemed to be suggesting strengthening with a percentage rise more robust than August 2015. New home closings saw a climb of 33.1% from the year earlier to 676. This came on the heels of a 24.2% hike year-over-year in August.
A total of 6,561 new homes were sold during the 12 months that ended in September, up from 6,393 for the year that ended in August.
Of 6,328 total closings, 676 were of new homes. This is an increase on a percentage basis, as new home closings were 9.3% of total closings a year ago. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes grew year-over-year to $423,817 per unit, a 4.9% boost. This bump is smaller than the 5.1% boost in August year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. In September 2015, there was a 3.7% hike in the average mortgage size, reaching $345,656. Average mortgage size gained 2.5% in August 2015 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 93.1% of new home closings to 92.8% of closings while attached units have gone from 6.9% of closings to 7.2% of closings.
There was a 7.8% surge year-over-year in the average unit size of newly sold homes to 2,752 square feet in September 2015. The average size of newly sold homes moved from 2,545 square feet in August 2014 to 2,617 square feet in August 2015. An increase in both the average size and price of newly sold homes was also seen in August 2015 when the average size gained 2.8% to 2,617 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 16.9% of closings, below 17.9% a year earlier. The percentage of existing home closings involving foreclosures went from 7.6% in September 2014 to 7.7% in September 2015 and REO closings as a percentage of existing home closings sank to 9.2% from 10.3% a year earlier.