In the San Diego, CA market in August, closings of new homes climbed year-over-year, moving up after a drop in July 2015. New home closings saw a 7.9% climb from a year earlier to 164. This was after the housing market saw a 18.2% drop year-over-year in July.
A total of 1,865 new homes were sold during the 12 months that ended in August, up from 1,853 for the year that ended in July.
As a percentage of overall housing closings, new home closings made up 4.2% of overall housing closings. They made up 4.6% of closings a year earlier. Closings of new and existing homes increased year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 6.5% in August to $833,760 per unit. This boost is smaller than the 9.1% gain in July year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. Average mortgage size rose 6.0% to $611,812 in August from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 9.4% boost year-over-year from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 69.1% of new home closings to 68.3% of closings while attached units have gone from 30.9% of closings to 31.7% of closings.
The average unit size of newly sold homes dropped 3.2% year-over-year to 3,085 square feet in August 2015. This fall was opposite the price lift, a pattern also seen in July 2015 when the average size of newly sold homes slid 13.8% to 2,531 square feet. In July, the average size of new homes sold went from 2,936 square feet a year earlier to 2,531 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 9.9% of existing home closings, down from 11.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.6% in August from 5.9% a year earlier and REO closings moved from 6.1% of existing home closings in August 2014 to 5.4% in August 2015.