The Stockton, CA market saw a rise in new home closings in December year-over-year, and the percentage surge was higher than November 2015, implying the market may be improving. New home closings saw a boost of 40.1% from the year earlier to 199. This came on the heels of a 33.7% rise year-over-year in November.
A total of 1,311 new homes were sold during the 12 months that ended in December, up from 1,254 for the year that ended in November.
Of 983 total closings, 199 were of new homes. This marks a rise from 16.6% of total closings a year earlier. Closings of new and existing homes gained year-over-year in December following a decline in November year-over-year.
Pricing and Mortgage Trends
In December, the average value of new homes saw a 4.2% boost year-over-year as it grew to $462,806 per unit. This rise is smaller than the 4.6% lift in November year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size gained 1.7% to $371,903 in December from a year earlier. Average mortgage size grew 3.3% in November 2015 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units gained from no part of closings in December 2014 to 3.0% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings slid to 97.0% of closings from all of closings.
There was a 13.3% fall year-over-year in the average unit size of newly sold homes to 2,204 square feet in December 2015. The average size of newly sold homes moved from 2,443 square feet in November 2014 to 2,773 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 16.1% of existing home closings, down from 22.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.9% in December from 10.3% a year earlier while REO closings as a percentage of existing home closings slid to 8.2% from 11.7% a year earlier.