There was a rise in closings of new homes in the San Diego, CA market in June year-over-year, rallying back from a decline in May 2016. New home closings saw a boost of 32.5% from the year earlier to 257. This came on the heels of a 8.5% drop year-over-year in May.
A total of 2,219 new homes were sold during the 12 months that ended in June, up from 2,156 for the year that ended in May.
New home closings made up 6.0% of overall housing closings. This is an increase on a percentage basis, as new home closings were 4.2% of total closings a year ago. Following a year-over-year decline in May, closings of new and existing homes also fell year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 17.4% rise year-over-year to $826,172 per unit in June. This surge is an improvement over the 13.1% lift in May year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. It increased to $604,573 in June, a 14.4% hike. It went from $576,334 to $575,412 from May 2015 to May 2016.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes gained from 53.1% in June 2015 to 63.4% of closings in June 2016. At the same time, the share of new home closings belonging to attached units sank to 36.6% of closings from 46.9% of closings.
There was a 18.6% fall year-over-year in the average unit size of newly sold homes to 2,222 square feet in June 2016. For newly sold homes, an average size decline contrasting with an average price gain was also seen in May 2016 when the average size of newly sold homes fell 11.0% to 2,609 square feet. In May, the average size of new homes sold went from 2,932 square feet a year earlier to 2,609 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 8.3% of existing home closings, below 8.8% a year earlier. The percentage of existing home closings involving foreclosures went from 4.2% in June 2015 to 3.3% in June 2016 and REO closings moved from 4.6% of existing home closings in June 2015 to 5.0% in June 2016.