There was an increase in closings of new homes in the San Diego, CA market in February year-over-year, but with an increase less steep than that of January 2016, the market seemed to be showing signs of evening out. There was a 12.0% climb in new home closings from a year earlier. This was after the housing market saw a more than twofold hike year-over-year in January.
A total of 2,076 new homes were sold during the 12 months that ended in February, up from 2,061 for the year that ended in January.
Out of all housing closings, new home closings made up 5.1%. As a part of the whole, new home closings were 4.6% a year earlier. After dropping in January from a year earlier, closings of new and existing homes gained year-over-year in February.
Pricing and Mortgage Trends
In February, the average price of newly sold homes stayed level year-over-year at $695,154 per unit. This comes after a 2.6% rise in January year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In February 2016, there was a 4.5% lift in the average mortgage size, reaching $555,719. In January 2016, average mortgage size gained 18.1% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings increased from 41.6% of all closings in February 2015 to 43.6% of closings in February 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 56.4% of closings from 58.4% of closings.
For all new homes sold, the average unit size declined 27.0% year-over-year to 2,316 square feet in February 2016. The average size of newly sold homes moved from 2,773 square feet in January 2015 to 2,669 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 11.3% of existing home closings, down from 13.3% a year earlier. The percentage of existing home closings involving foreclosures went from 6.0% in February 2015 to 5.6% in February 2016 and REO closings as a percentage of existing home closings fell to 5.7% from 7.4% a year earlier.