There was a rise in closings of new homes in the San Luis Obispo, CA market in December year-over-year, moving upward off a fall in November 2015. There was a 80.0% hike in new home closings from a year earlier. This was after the housing market saw a 9.4% fall year-over-year in November.
A total of 455 new homes were sold during the 12 months that ended in December, up from 423 for the year that ended in November.
Out of all housing closings, new home closings accounted for 18.2%. This is an increase on a percentage basis, as new home closings were 12.7% of total closings a year ago. After dropping in November from a year earlier, closings of new and existing homes grew year-over-year in December.
Pricing and Mortgage Trends
The average price of new homes slid by 33.5% year-over-year to $441,707 per unit in December. This decline compares to a 13.4% boost in November year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. Average mortgage size sank by 34.0% from a year earlier, settling at $281,038 in December. In November 2015, average mortgage size on newly sold homes saw a 9.3% fall from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. Attached unit closings jumped from 2.5% of all closings in December 2014 to 54.2% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 45.8% of closings from 97.5% of closings.
There was a 18.2% drop year-over-year in the average unit size of newly sold homes to 1,809 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 6.5% of closings, below 8.0% a year earlier. The percentage of existing home closings involving foreclosures went from 3.3% in December 2014 to 3.1% in December 2015 and REO closings as a percentage of existing home closings sank to 3.4% from 4.7% a year earlier.