In the San Jose, CA market in April, new home closings dropped year-over-year, and the percentage drop was steeper than March 2016, giving suggestion the market may be worsening. New home closings saw a decline of 24.0% from the year earlier to 114. This came after a 9.8% drop year-over-year in March.
A total of 2,098 new homes were sold during the 12 months that ended in April, down from 2,134 for the year that ended in March.
Closings of new homes made up 6.9% of total closings, consistent with last year's figures. For new and existing homes, closings fell in April after also declining in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes sank 3.8% year-over-year in April to $894,274 per unit. This fall is a drop off from the 7.4% decline in March from a year earlier.
For newly sold homes, average mortgage size moved from $634,548 in April 2015 to $628,717 in April 2016. In March 2016, average mortgage size slid 2.0% 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 rose from 38.7% in April 2015 to 43.9% of closings in April 2016. Conversely, the share of new home closings belonging to attached units slid to 56.1% of closings from 61.3% of closings.
There was a 15.9% fall year-over-year in the average unit size of newly sold homes to 1,634 square feet in April 2016. The average size of newly sold homes moved from 2,053 square feet in March 2015 to 1,667 square feet in March 2016. A decrease in both the average size and price of newly sold homes was also seen in March 2016 when the average size climbed 18.8% to 1,667 square feet.
Combined, foreclosures plus REO closings made up 4.6% of existing home closings. In April 2015, they represented 4.5%. The percentage of existing home closings involving foreclosures went from 2.1% in April 2015 to 1.8% in April 2016 and REO closings moved from 2.4% of existing home closings in April 2015 to 2.7% in April 2016.