New home closings increased year-over-year in July in the San Jose, CA market, and the market seemed to be improving as the percentage surge was larger than that of June 2015. Closings climbed 35.8% from a year earlier to 182. In comparison, new home closings in the same month last year saw a 28.8% boost year-over-year in June.
A total of 2,177 new homes were sold during the 12 months that ended in July, up from 2,129 for the year that ended in June.
Of 2,000 total closings, 182 were of new homes. This marks a rise from 7.1% of total closings a year earlier. For new and existing homes, closings increased year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 13.7% gain year-over-year as it grew to $909,072 per unit. This surge is better than the 3.5% bump in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size rose to $628,796 in July, marking a 7.6% lift compared with a year earlier. In June 2015, average mortgage size on newly sold homes saw a 4.0% gain year-over-year from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 38.8% of new home closings to 37.9% of closings while attached units have gone from 61.2% of closings to 62.1% of closings.
The average unit size of newly sold homes remained steady year-over-year at 2,156 square feet in July 2015. In June, the average size of new homes sold went from 2,233 square feet a year earlier to 1,843 square feet.
Foreclosures and real estate owned (REO) closings rose in July from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 5.0% of existing home closings, up from 4.5% a year earlier. The percentage of existing home closings involving foreclosures stayed at 2.3% of closings in July from a year earlier and REO closings moved from 2.1% of existing home closings in July 2014 to 2.7% in July 2015.