There was an increase in new home closings in the San Luis Obispo, CA market in August year-over-year, and the percentage surge was better than July 2015, suggesting the market may be strengthening. Closings increased 90.0% from a year earlier to 38. In comparison, new home closings in the same month last year saw a 26.3% rise year-over-year in July.
A total of 388 new homes were sold during the 12 months that ended in August, up from 370 for the year that ended in July.
New home closings made up 9.7% of overall housing closings. This marks a rise from 5.9% of total closings a year earlier. Following a year-over-year increase in July, closings of new and existing homes also jumped year-over-year in August.
Pricing and Mortgage Trends
In August, there was a 9.2% fall year-over-year in the average per-unit price of newly sold homes, settling at $524,539. This decline compares to a 5.0% gain in July year-over-year.
Average mortgage size on new homes slid year-over-year in contrast to new home prices. It dropped to $336,360 in August, a 12.7% fall. In July 2015, average mortgage size increased 6.7% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings grew from no part of all closings in August 2014 to 15.8% of closings in August 2015. Conversely, the share belonging to single-family homes slid to 84.2% of closings from all of closings.
The average unit size of newly sold homes sank 52.8% year-over-year to 892 square feet in August 2015. In July, the average size of new homes sold went from 1,965 square feet a year earlier to 1,500 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 5.1% of existing home closings, down from 9.4% a year earlier. The percentage of existing home closings involving foreclosures went from 3.1% in August 2014 to 2.8% in August 2015 and REO closings as a percentage of existing home closings dropped to 2.3% from 6.3% a year earlier.