New home closings in the Santa Barbara, CA market declined year-over-year in June, but there were signals of market improvement with a percentage decline less steep than in May 2016. New home closings saw a 28.6% fall from a year earlier to 20. This followed a 60.9% decline year-over-year in May.
A total of 358 new homes were sold during the 12 months that ended in June, down from 366 for the year that ended in May.
New home closings made up 5.3% of overall housing closings. This is a fall 7.1% of closings a year earlier. For new and existing homes, closings sank in June after also declining in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 8.1% lift year-over-year to $559,400 per unit in June. This boost is smaller than the 9.5% bump in May year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 10.9% rise year-over-year to $422,542 in June. Average mortgage size jumped 2.5% in May 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 82.1% in June 2015 to 95.0% of closings in June 2016. At the same time, the share of new home closings belonging to attached units slid to 5.0% of closings from 17.9% of closings.
There was a 54.4% hike year-over-year in the average unit size of newly sold homes to 2,680 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size grew 22.8% to 2,339 square feet. In May, the average size of new homes sold went from 1,904 square feet a year earlier to 2,339 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 7.8% of existing home closings, below 11.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.1% in June from 5.4% a year earlier while REO closings as a percentage of existing home closings slid to 4.7% from 6.3% a year earlier.