Closings of new homes in the San Diego, CA market gained year-over-year in April, but as the percentage grew less than March 2016, the market seemed to show signs of leveling. New home closings saw a jump of 30.0% from the year earlier to 182. This came after a 31.8% jump year-over-year in March.
A total of 2,166 new homes were sold during the 12 months that ended in April, up from 2,124 for the year that ended in March.
New home closings made up 4.8% of overall housing closings. This marks a rise from 3.3% of total closings a year earlier. After rising year-over-year in March, closings of new and existing homes slid year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year 20.4% in April to $801,310 per unit. This hike is an improvement over the 8.7% surge in March year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In April 2016, the average mortgage size on newly sold homes saw a 14.9% hike from a year earlier. Average mortgage size jumped 11.9% in March 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units grew from 33.6% of closings in April 2015 to 41.8% of closings in April 2016. At the same time, the share belonging to single-family homes dropped to 58.2% of closings from 66.4% of closings.
There was a 7.2% decline year-over-year in the average unit size of newly sold homes to 2,583 square feet in April 2016. For newly sold homes, an average size drop contrasting with an average price rise was also seen in March 2016 when the average size of newly sold homes sank 17.0% to 2,370 square feet. In March, the average size of new homes sold went from 2,856 square feet a year earlier to 2,370 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 8.3% of closings, below 11.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.4% in April from 5.7% a year earlier and REO closings moved from 5.7% of existing home closings in April 2015 to 5.0% in April 2016.