Closings of new homes grew year-over-year in July in the San Diego, CA market, and the market seemed to be signaling bolstering with a percentage gain stronger than June 2016. New home closings saw a 72.3% climb from a year earlier to 224. This came after a 32.5% jump year-over-year in June.
A total of 2,313 new homes were sold during the 12 months that ended in July, up from 2,219 for the year that ended in June.
As a percentage of overall housing closings, new home closings made up 5.7%. This is an increase on a percentage basis, as new home closings were 3.0% of total closings a year ago. For new and existing homes, closings dropped in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes slid 1.9% year-over-year in July to $783,344 per unit. This fall compares to a 17.4% lift in June year-over-year.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. Average mortgage size declined by 2.5% from a year earlier, settling at $584,562 in July. Average mortgage size climbed 14.4% in June 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings increased from 58.5% of new closings in July 2015 to 67.0% of closings in July 2016. At the same time, the share of new home closings belonging to attached units declined to 33.0% of closings from 41.5% of closings.
There was a 5.9% decline year-over-year in the average unit size of newly sold homes to 2,712 square feet in July 2016. The average size of newly sold homes moved from 2,729 square feet in June 2015 to 2,222 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 6.6% of existing home closings, below 8.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.7% in July from 4.2% a year earlier and REO closings moved from 4.7% of existing home closings in July 2015 to 3.9% in July 2016.