New home closings jumped year-over-year in December in the San Francisco, CA market, and there were suggestions of strengthening market conditions as the percentage rise was an greater than November 2015. New home closings saw a hike of 58.9% from the year earlier to 631. This was after the housing market saw a 24.4% jump year-over-year in November.
A total of 3,951 new homes were sold during the 12 months that ended in December, up from 3,717 for the year that ended in November.
Out of all housing closings, new home closings accounted for 13.2%. This is a gain from 9.6% of closings a year earlier. Following a fall in November year-over-year, closings of new and existing homes jumped year-over-year in December.
Pricing and Mortgage Trends
In December, the average value of new homes saw a 13.2% boost year-over-year as it grew to $931,052 per unit. This rise compares to a 6.0% drop in November from a year earlier.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. Average mortgage size climbed 14.0% to $659,857 in December from a year earlier. It went from $598,890 to $596,929 from November 2014 to November 2015.
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 increased from 26.7% of all closings in December 2014 to 42.8% of closings in December 2015. Conversely, the share belonging to single-family homes declined to 57.2% of closings from 73.3% of closings.
There was a 27.7% fall year-over-year in the average unit size of newly sold homes to 1,815 square feet in December 2015. In November, the average size of new homes sold went from 2,272 square feet a year earlier to 1,529 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 8.9% of closings, below 10.9% a year earlier. The percentage of existing home closings involving foreclosures went from 4.6% in December 2014 to 3.8% in December 2015 and REO closings as a percentage of existing home closings fell to 5.1% from 6.2% a year earlier.