There was a rise in new home closings in the Vallejo, CA market in May year-over-year, and the market showed hints of strengthening as the percentage rise turned out sharper than April 2016. New home closings saw a 82.5% hike from a year earlier to 73. This came after a 36.4% boost year-over-year in April.
A total of 935 new homes were sold during the 12 months that ended in May, up from 902 for the year that ended in April.
As a percentage of overall housing closings, new home closings represented 11.8%. This is an increase on a percentage basis, as new home closings were 6.5% of total closings a year ago. Closings of new and existing homes stayed level after declining in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 11.4% in May to $494,001 per unit. This surge is better than the 6.6% lift in April year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In May 2016, the average mortgage size was $397,842, up 5.6% from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 1.5% decline 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 made up all of new home closings while attached unit closings have accounted for no part of closings.
For all new homes sold, the average unit size slid 8.4% year-over-year to 1,968 square feet in May 2016. This drop was opposite the price surge, a pattern also seen in April 2016 when the average size of newly sold homes sank 25.9% to 1,669 square feet. In April, the average size of new homes sold went from 2,252 square feet a year earlier to 1,669 square feet.
Foreclosures and real estate owned (REO) closings continued to decline 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 accounted for 14.5% of closings, below 20.6% a year earlier. The percentage of existing home closings involving foreclosures rose to 8.1% in May from 6.4% a year earlier while REO closings as a percentage of existing home closings sank to 6.4% from 14.2% a year earlier.