Closings of new homes slid year-over-year in September in the San Diego, CA market, a move downward following a boost in August 2015. New home closings saw a drop of 9.0% from the year earlier to 191. This came on the heels of a 7.9% climb year-over-year in August.
A total of 1,866 new homes were sold during the 12 months that ended in September, down from 1,885 for the year that ended in August.
Out of all housing closings, new home closings accounted for 5.1%. This is down from the a year earlier when new home closings represented 6.3% of total closings. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 28.3% year-over-year in September to $884,650 per unit. This hike is better than the 6.5% surge in August year-over-year.
The average mortgage size on newly sold homes climbed year-over-year along with the average price of new homes. It jumped 27.7% in September from a year earlier to $638,207. In August 2015, average mortgage size on newly sold homes saw a 6.0% boost year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes increased from 54.3% in September 2014 to 73.3% of closings in September 2015. Conversely, the share of new home closings belonging to attached units declined to 26.7% of closings from 45.7% of closings.
The average unit size of newly sold homes rose 6.2% year-over-year to 3,031 square feet in September 2015. In August, the average size of new homes sold went from 3,188 square feet a year earlier to 3,085 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 10.3% of closings, below 11.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.2% in September from 5.5% a year earlier and REO closings moved from 5.6% of existing home closings in September 2014 to 6.1% in September 2015.