In the San Diego, CA market, closings of new homes dropped year-over-year in May, a downhill move after a lift in April 2016. New home closings saw a decline of 9.1% from the year earlier to 150. This came after a 30.0% climb 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.
Out of all housing closings, new home closings made up 4.0%. They represented 4.2% of closings a year earlier. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 13.0% in May to $807,708 per unit. This surge is smaller than the 20.4% rise in April year-over-year.
For newly sold homes, average mortgage size moved from $576,334 in May 2015 to $575,673 in May 2016. In April 2016, average mortgage size climbed 14.9% 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.
For all new homes sold, the average unit size declined 28.5% year-over-year to 2,265 square feet in May 2016. This drop was opposite the price boost, a pattern also seen in April 2016 when the average size of newly sold homes sank 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 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 8.4% of closings, below 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.