Closings of new homes in the San Luis Obispo, CA market dropped year-over-year in July, a move downward following a bump in June 2016. New home closings saw a fall of 22.9% from the year earlier to 37. This followed a 21.3% climb year-over-year in June.
A total of 529 new homes were sold during the 12 months that ended in July, down from 540 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 9.3%. This is down from the a year earlier when new home closings represented 11.3% of total closings. Following a year-over-year increase in June, closings of new and existing homes slid year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes declined 5.5% year-over-year to $523,365 per unit. This decline is a drop off from the 6.6% fall in June from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In July 2016, average mortgage size slid 11.0% from a year earlier to $345,293. In June 2016, average mortgage size declined 9.5% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units jumped from 27.1% of closings in July 2015 to 35.1% of closings in July 2016. Conversely, the share belonging to single-family homes fell to 64.9% of closings from 72.9% of closings.
For all new homes sold, the average unit size increased 10.1% year-over-year to 2,152 square feet in July 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 3.3% of closings, below 5.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 0.8% in July from 1.9% a year earlier and REO closings moved from 3.2% of existing home closings in July 2015 to 2.5% in July 2016.