Closings of new homes increased year-over-year in April in the San Francisco, CA market, and the percentage boost was higher than March 2016, implying the market may be improving. There was a 7.7% jump in new home closings from a year earlier. This was after the housing market saw a 3.3% boost year-over-year in March.
A total of 4,133 new homes were sold during the 12 months that ended in April, up from 4,111 for the year that ended in March.
Of 4,123 total closings, 306 were of new homes. This is a hike from 5.9% of closings a year earlier. For new and existing homes, closings declined in April after also declining in March year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 23.0% bump year-over-year in April to $1,069,170.00 per unit. This lift is an improvement over the 12.7% hike in March year-over-year.
The average mortgage size on newly sold homes saw a rise year-over-year along with new home prices. In April 2016, the average mortgage size was $733,073, up 16.5% from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 7.9% lift 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. Single-family home closings gained from 58.5% of new closings in April 2015 to 71.6% of closings in April 2016. At the same time, the share of new home closings belonging to attached units sank to 28.4% of closings from 41.5% of closings.
For all new homes sold, the average unit size jumped 43.5% year-over-year to 3,422 square feet in April 2016. In March, the average size of new homes sold went from 2,260 square feet a year earlier to 2,010 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 7.9% of closings, below 9.6% a year earlier. The percentage of existing home closings involving foreclosures went from 4.1% in April 2015 to 3.1% in April 2016 and REO closings moved from 5.5% of existing home closings in April 2015 to 4.8% in April 2016.