In the San Diego, CA market, closings of new homes grew year-over-year in December, but with an increase less steep than that of November 2015, the market seemed to be showing signs of stabilizing. New home closings saw a hike of 9.5% from the year earlier to 299. This came after a 28.8% hike year-over-year in November.
A total of 1,990 new homes were sold during the 12 months that ended in December, up from 1,964 for the year that ended in November.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 8.0%. After dropping in November from a year earlier, closings of new and existing homes jumped year-over-year in December.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 20.9% in December to $918,659 per unit. This hike follows a move from $788,726 per unit to $785,742 from November 2014 to November 2015.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. It increased to $639,224 in December, a 14.0% boost. In November 2015, average mortgage size on newly sold homes saw a 1.5% fall from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings jumped from 55.7% of new closings in December 2014 to 70.9% of closings in December 2015. Conversely, the share of new home closings belonging to attached units dropped to 29.1% of closings from 44.3% of closings.
There was a 17.0% drop year-over-year in the average unit size of newly sold homes to 2,539 square feet in December 2015. The average size of newly sold homes moved from 2,956 square feet in November 2014 to 2,297 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 10.8% of existing home closings, down from 12.1% a year earlier. The percentage of existing home closings involving foreclosures went from 5.7% in December 2014 to 5.2% in December 2015 and REO closings moved from 6.4% of existing home closings in December 2014 to 5.6% in December 2015.