In March, closings of new homes in the San Diego, CA market increased year-over-year, and the percentage hike was better than February 2016, suggesting the market may be strengthening. New home closings saw a 31.1% jump from a year earlier to 194. This came after a 12.0% hike year-over-year in February.
A total of 2,122 new homes were sold during the 12 months that ended in March, up from 2,076 for the year that ended in February.
Out of all housing closings, new home closings represented 5.1%. This marks a rise from 4.1% of total closings a year earlier. Following a year-over-year increase in February, closings of new and existing homes also gained year-over-year in March.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes climbed year-over-year to $838,052 in March, up 8.9% from last year. This bump compares to a period of relatively little movement in February from a year earlier.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In March 2016, average mortgage size grew 11.9% from a year earlier to $628,315. Average mortgage size rose 4.5% in February 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings increased from 34.5% of all closings in March 2015 to 39.2% of closings in March 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 60.8% of closings from 65.5% of closings.
The average unit size of newly sold homes dropped 29.6% year-over-year to 2,011 square feet in March 2016. The average size of newly sold homes moved from 3,173 square feet in February 2015 to 2,316 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 9.5% of existing home closings, down from 11.5% a year earlier. The percentage of existing home closings involving foreclosures went from 4.7% in March 2015 to 3.9% in March 2016 and REO closings as a percentage of existing home closings dropped to 5.6% from 6.9% a year earlier.