In the San Francisco, CA market, new home closings jumped year-over-year in September, on an upswing after a fall in August 2015. New home closings saw a 28.0% hike from a year earlier to 343. This was after the housing market saw a 8.4% decline year-over-year in August.
A total of 3,557 new homes were sold during the 12 months that ended in September, up from 3,482 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 7.3% of overall housing closings. They represented 6.3% of closings a year earlier. Following a fall in August year-over-year, closings of new and existing homes jumped year-over-year in September.
Pricing and Mortgage Trends
In September, the average price of newly sold homes jumped 6.6% year-over-year to $885,338 per unit. This rise is better than the 2.8% boost in August year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. It jumped 1.2% in September from a year earlier to $625,068. In August 2015, average mortgage size on newly sold homes saw a 7.6% bump year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings increased from 74.3% of new closings in September 2014 to 76.7% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings declined to 23.3% of closings from 25.7% of closings.
There was a 4.5% decline year-over-year in the average unit size of newly sold homes to 2,481 square feet in September 2015. This drop was opposite the price gain, a pattern also seen in August 2015 when the average size of newly sold homes slid 5.4% to 2,307 square feet. The average size of newly sold homes moved from 2,439 square feet in August 2014 to 2,307 square feet in August 2015.
Foreclosures and real estate owned (REO) closings increased in September from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 9.6% of existing home closings, above 8.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.0% in September from 3.1% a year earlier and REO closings moved from 5.3% of existing home closings in September 2014 to 4.6% in September 2015.