New home closings in the San Francisco, CA market sank year-over-year in July, and with a percentage decline steeper than June 2013, there were suggestions the market may be worsening. There was a 13.8% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 4.6% drop year-over-year in June.
A total of 3,633 new homes were sold during the 12 months that ended in July, down from 3,676 for the year that ended in June.
Out of all housing closings, new home closings represented 5.1%. This is down from the a year earlier when new home closings made up 6.2% of total closings. Following a decline in June year-over-year, closings of new and existing homes grew year-over-year in July.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes increased year-over-year to $608,087 in July, up 7.0% from last year. This hike is higher than the 1.1% boost in June year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $479,869 in July, marking a 12.9% rise compared with a year earlier. Average mortgage size gained 7.3% in June 2013 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 jumped from 51.3% in July 2012 to 80.7% of closings in July 2013. At the same time, the share of new home closings belonging to attached units dropped to 19.3% of closings from 48.7% of closings.
There was a 14.6% rise year-over-year in the average unit size of newly sold homes to 1,637 square feet in July 2013. An increase in both the average size and price of newly sold homes was also seen in June 2013 when the average size gained 9.0% to 1,728 square feet. In June, the average size of new homes sold went from 1,586 square feet a year earlier to 1,728 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 13.4% of closings, below 28.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.1% in July from 11.7% a year earlier while REO closings as a percentage of existing home closings sank to 8.3% from 16.9% a year earlier.
Learn more about markets featured in this article: San Francisco, CA.