In the San Francisco, CA market, new home closings grew year-over-year in March, but there were signs of market leveling as the percentage lift was less than February 2016. There was a 3.0% jump in new home closings from a year earlier. This came after a 46.4% hike year-over-year in February.
A total of 4,173 new homes were sold during the 12 months that ended in March, up from 4,163 for the year that ended in February.
New home closings represented 8.8% of overall housing closings. As a part of the whole, new home closings were 8.1% a year earlier. Closings of new and existing homes saw a drop year-over-year in March after remaining steady in February year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 12.7% in March to $935,215 per unit. This gain is an improvement over the 12.1% hike in February year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $652,969 in March, marking a 7.8% bump compared with a year earlier. In February 2016, average mortgage size on newly sold homes saw a 12.7% surge year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings grew from 58.3% of new closings in March 2015 to 72.0% of closings in March 2016. Conversely, the share of new home closings belonging to attached units slid to 28.0% of closings from 41.7% of closings.
For all new homes sold, the average unit size dropped 17.3% year-over-year to 1,869 square feet in March 2016. For newly sold homes, an average size fall contrasting with an average price rise was also seen in February 2016 when the average size of newly sold homes fell 30.0% to 1,541 square feet. In February, the average size of new homes sold went from 2,203 square feet a year earlier to 1,541 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 8.5% of existing closings, lower than 8.9% a year earlier. The percentage of existing home closings involving foreclosures stayed at 3.6% of closings in March from a year earlier and REO closings moved from 5.3% of existing home closings in March 2015 to 4.8% in March 2016.