In the San Francisco, CA market, closings of new homes sank year-over-year in August, a downhill move after a boost in July 2015. New home closings saw a 10.3% decline from a year earlier to 262. This came on the heels of a 16.9% boost year-over-year in July.
A total of 3,497 new homes were sold during the 12 months that ended in August, down from 3,527 for the year that ended in July.
New home closings made up 5.6% of overall housing closings. They accounted for 6.2% of closings a year earlier. Following a year-over-year rise in July, closings of new and existing homes fell year-over-year in August.
Pricing and Mortgage Trends
In August, the average price of newly sold homes increased 4.2% year-over-year to $864,787 per unit. This lift follows a move from $858,528 per unit to $855,677 from July 2014 to July 2015.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. The average mortgage size rose to $637,830 in August, marking a 9.1% surge compared with a year earlier. In July 2015, average mortgage size on newly sold homes saw a 4.6% boost year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings grew from 66.4% of new closings in August 2014 to 78.6% of closings in August 2015. Conversely, the share of new home closings belonging to attached units slid to 21.4% of closings from 33.6% of closings.
For all new homes sold, the average unit size declined 3.6% year-over-year to 2,304 square feet in August 2015. The average size of newly sold homes moved from 2,454 square feet in July 2014 to 2,272 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 7.0% of closings, below 9.0% a year earlier. The percentage of existing home closings involving foreclosures went from 3.3% in August 2014 to 2.8% in August 2015 and REO closings as a percentage of existing home closings slid to 4.1% from 5.7% a year earlier.