Closings of new homes in the San Francisco, CA market gained year-over-year in April, and the percentage gain was sharper than March 2016, hinting that the market may be strengthening. There was a 7.7% rise in new home closings from a year earlier. This was after the housing market saw a 3.3% rise year-over-year in March.
A total of 4,133 new homes were sold during the 12 months that ended in April, up from 4,111 for the year that ended in March.
Out of all housing closings, new home closings represented 7.4%. This marks a rise from 5.9% of total closings a year earlier. For new and existing homes, closings dropped in April after also declining in March year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 23.0% surge year-over-year in April to $1,069,170.00 per unit. This boost is higher than the 12.7% hike in March year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. It rose to $733,073 in April, a 16.5% surge. Average mortgage size jumped 7.9% in March 2016 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. The share of new home closings belonging to single-family homes rose from 58.5% in April 2015 to 71.6% of closings in April 2016. At the same time, the share of new home closings belonging to attached units declined to 28.4% of closings from 41.5% of closings.
For all new homes sold, the average unit size increased 43.5% year-over-year to 3,422 square feet in April 2016. The average size of newly sold homes moved from 2,260 square feet in March 2015 to 2,010 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 7.9% of existing home closings, down from 9.6% a year earlier. The percentage of existing home closings involving foreclosures went from 4.1% in April 2015 to 3.1% in April 2016 and REO closings moved from 5.5% of existing home closings in April 2015 to 4.8% in April 2016.