The San Francisco, CA market saw a rise in new home closings in July year-over-year, and there were signs that the market may be gaining momentum as the percentage gain proved better than June 2016. New home closings saw a 11.6% boost from a year earlier to 347. In comparison, new home closings in the same month last year saw a 6.0% boost year-over-year in June.
A total of 4,339 new homes were sold during the 12 months that ended in July, up from 4,303 for the year that ended in June.
New home closings represented 7.5% of overall housing closings. This marks a rise from 5.7% of total closings a year earlier. Closings of new and existing homes sank year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 21.5% boost year-over-year to $1,033,035.00 per unit in July. This gain is smaller than the 24.7% surge in June year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. In July 2016, the average mortgage size was $719,130, up 12.1% from a year earlier. In June 2016, average mortgage size gained 14.8% 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 climbed from 29.9% of all closings in July 2015 to 39.5% of closings in July 2016. Conversely, the share belonging to single-family homes fell to 60.5% of closings from 70.1% of closings.
For all new homes sold, the average unit size grew 33.6% year-over-year to 3,374 square feet in July 2016. The average size of newly sold homes moved from 2,488 square feet in June 2015 to 2,942 square feet in June 2016. An increase was also seen in June 2016 when the average size of new homes sold gained 18.2% to 2,942 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. Out of all existing home closings, foreclosures combined with REO closings accounted for 5.8% of closings, below 7.5% a year earlier. The percentage of existing home closings involving foreclosures went from 3.2% in July 2015 to 2.7% in July 2016 and REO closings as a percentage of existing home closings dropped to 3.0% from 4.3% a year earlier.