Closings of new homes in the San Jose, CA market slid year-over-year in July, and the market seemed to be weakening with a percentage drop steeper than in June 2016. New home closings saw a decline of 59.0% from the year earlier to 80. This came on the heels of a 29.3% fall year-over-year in June.
A total of 1,889 new homes were sold during the 12 months that ended in July, down from 2,004 for the year that ended in June.
Out of all housing closings, new home closings represented 5.1%. This is down from the a year earlier when new home closings made up 9.7% of total closings. Following a year-over-year decline in June, closings of new and existing homes also slid year-over-year in July.
Pricing and Mortgage Trends
In July, the average price of newly sold homes rose 11.1% year-over-year to $1,000,952.00 per unit. This rise is better than the 2.1% hike in June year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. In July 2016, the average mortgage size on newly sold homes saw a 3.5% drop from a year earlier. In June 2016, average mortgage size rose 2.1% 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. Single-family home closings climbed from 39.0% of new closings in July 2015 to 40.0% of closings in July 2016. Meanwhile, attached units as a percentage of all new home closings sank to 60.0% of closings from 61.0% of closings.
There was a 9.2% drop year-over-year in the average unit size of newly sold homes to 1,935 square feet in July 2016. In June, the average size of new homes sold went from 1,994 square feet a year earlier to 2,281 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 4.5% of existing closings, lower than 4.7% a year earlier. The percentage of existing home closings involving foreclosures stayed at 1.9% of closings in July from a year earlier and REO closings moved from 2.9% of existing home closings in July 2015 to 2.7% in July 2016.