In May, the San Diego, CA market saw a fall year-over-year in new home closings, a drop following an increase in April 2016. There was a 9.1% drop in new home closings from a year earlier. This followed a 30.0% hike year-over-year in April.
A total of 2,151 new homes were sold during the 12 months that ended in May, down from 2,166 for the year that ended in April.
New home closings represented 4.0% of overall housing closings. A year ago, 4.2% of total closings were new home closings. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year in May to $807,708 per unit, a rise of 13.0%. This boost is smaller than the 20.4% bump in April year-over-year.
In May 2016, average mortgage size on newly sold homes moved from $576,334 to $575,673 from May 2015. Average mortgage size gained 14.9% in April 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 49.7% of new home closings to half of closings while attached units have gone from 50.3% of closings to half of closings.
The average unit size of newly sold homes slid 28.5% year-over-year to 2,265 square feet in May 2016. For newly sold homes, an average size decline contrasting with an average price hike was also seen in April 2016 when the average size of newly sold homes dropped 7.2% to 2,583 square feet. The average size of newly sold homes moved from 2,783 square feet in April 2015 to 2,583 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 8.4% of existing closings, lower than 9.5% a year earlier. The percentage of existing home closings involving foreclosures went from 4.1% in May 2015 to 3.8% in May 2016 and REO closings moved from 5.4% of existing home closings in May 2015 to 4.6% in May 2016.