The San Luis Obispo, CA market saw a rise in new home closings in January year-over-year, and there were suggestions that the market may be improving as the percentage boost was better than December 2015. New home closings saw a more than twofold hike from a year earlier to 39. This followed a 80.0% climb year-over-year in December.
A total of 475 new homes were sold during the 12 months that ended in January, up from 455 for the year that ended in December.
As a percentage of overall housing closings, new home closings made up 14.2%. This marks a rise from 7.5% of total closings a year earlier. Following a year-over-year increase in December, closings of new and existing homes also increased year-over-year in January.
Pricing and Mortgage Trends
Average price of newly sold homes had a 11.7% bump year-over-year to $533,603 per unit in January. This lift compares to a 33.5% decline in December from a year earlier.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. The average mortgage size rose to $348,288 in January, marking a 18.4% rise compared with a year earlier. Average mortgage size slid 34.0% in December 2015 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings jumped from 15.8% of all closings in January 2015 to 41.0% of closings in January 2016. At the same time, the share belonging to single-family homes declined to 59.0% of closings from 84.2% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 7.7% of closings, below 9.4% a year earlier. The percentage of existing home closings involving foreclosures went from 3.4% in January 2015 to 3.8% in January 2016 and REO closings as a percentage of existing home closings declined to 3.8% from 6.0% a year earlier.