In May, there was an increase in closings of new homes in the San Francisco, CA market year-over-year, and the market seemed to be improving as the percentage gain was larger than that of April 2016. New home closings saw a 29.1% boost from a year earlier to 319. This came after a 10.2% climb year-over-year in April.
A total of 4,222 new homes were sold during the 12 months that ended in May, up from 4,150 for the year that ended in April.
Out of all housing closings, new home closings accounted for 7.2%. This is an increase on a percentage basis, as new home closings were 5.1% of total closings a year ago. For new and existing homes, closings fell in May after also declining in April year-over-year.
Pricing and Mortgage Trends
In May, the average price of newly sold homes rose 21.7% year-over-year to $1,024,362.00 per unit. This boost is smaller than the 22.6% rise in April year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In May 2016, the average mortgage size was $683,324, a 9.3% lift from a year earlier. In April 2016, average mortgage size increased 16.5% 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 rose from 69.6% of new closings in May 2015 to 78.4% of closings in May 2016. Meanwhile, attached units as a percentage of all new home closings dropped to 21.6% of closings from 30.4% of closings.
The average unit size of newly sold homes declined 9.5% year-over-year to 2,261 square feet in May 2016. The average size of newly sold homes moved from 2,384 square feet in April 2015 to 2,926 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 6.1% of closings, below 8.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.2% in May from 3.6% a year earlier while REO closings as a percentage of existing home closings sank to 3.9% from 5.0% a year earlier.