New home closings in the San Luis Obispo, CA market remained steady year-over-year in May, evening out after a hike in April from the year earlier. Closings remained steady from a year earlier at 37. New home closings climbed 13.6%in April year-over-year.

A total of 524 new homes were sold during the 12 months that ended in May, equal to the number of new homes sold for the year that ended in April.

New home closings were 10.2% of total number of closings, same as last year. Closings of new and existing homes stayed level after increasing in April year-over-year.

Pricing and Mortgage Trends

In May, there was a 8.8% decline year-over-year in the average per-unit price of newly sold homes, settling at $559,635. This decline compares to a 23.2% bump in April year-over-year.

Average mortgage size on new homes fell year-over-year in contrast to new home prices. It sank to $409,637 in May, a 7.8% fall. In April 2016, average mortgage size gained 3.5% 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. The share of new home closings belonging to attached units rose from 13.5% of closings in May 2015 to 32.4% of closings in May 2016. At the same time, the share belonging to single-family homes sank to 67.6% of closings from 86.5% of closings.

For all new homes sold, the average unit size rose 13.1% year-over-year to 2,174 square feet in May 2016. In April, the average size of new homes sold went from 1,669 square feet a year earlier to 1,873 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. Together, foreclosures plus REO closings made up 3.4% of existing home closings, down from 6.4% a year earlier. The percentage of existing home closings involving foreclosures went from 1.5% in May 2015 to 0.6% in May 2016 and REO closings as a percentage of existing home closings slid to 2.8% from 4.9% a year earlier.

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