The San Francisco, CA market saw a rise in new home closings in July year-over-year, but with a rise less sharp than June 2015, there were suggestions the market may be leveling out. New home closings saw a hike of 16.5% from the year earlier to 296. In comparison, new home closings in the same month last year saw a 24.5% boost year-over-year in June.
A total of 3,457 new homes were sold during the 12 months that ended in July, up from 3,415 for the year that ended in June.
Of the total number of closings, new home closings made up 5.5%. New home closings were 4.9% of overall closings last year. Closings of new and existing homes gained year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in July 2015 was $854,990, a move from $858,554 a year earlier. This followed a 5.2% rise in June year-over-year.
Average mortgage size on new homes grew year-over-year in contrast to new home prices. It grew 4.8% in July from a year earlier to $644,218. In June 2015, average mortgage size on newly sold homes saw a 7.3% bump year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units grew from 24.0% of closings in July 2014 to 29.4% of closings in July 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 70.6% of closings from 76.0% of closings.
There was a 12.8% fall year-over-year in the average unit size of newly sold homes to 2,179 square feet in July 2015. The average size of newly sold homes moved from 2,572 square feet in June 2014 to 2,460 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 7.4% of existing home closings, below 8.6% a year earlier. The percentage of existing home closings involving foreclosures went from 3.7% in July 2014 to 3.2% in July 2015 and REO closings moved from 4.9% of existing home closings in July 2014 to 4.2% in July 2015.