New home closings in the San Francisco, CA market gained year-over-year in June, but as the percentage gained less than May 2016, the market seemed to show signs of leveling. Closings rose 6.0% from a year earlier to 337. This was after the housing market saw a 33.5% climb year-over-year in May.
A total of 4,312 new homes were sold during the 12 months that ended in June, up from 4,293 for the year that ended in May.
Out of all housing closings, new home closings accounted for 6.7%. They represented 5.8% of closings a year earlier. Following a year-over-year decline in May, closings of new and existing homes also declined year-over-year in June.
Pricing and Mortgage Trends
In June, there was a 24.7% gain year-over-year in the average price of newly sold homes, reaching $1,044,080.00 per unit. This lift is smaller than the 25.7% rise in May year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. The average mortgage size rose to $719,161 in June, marking a 14.8% surge compared with a year earlier. Average mortgage size gained 9.6% in May 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units jumped from 24.2% of closings in June 2015 to 25.8% of closings in June 2016. At the same time, the share belonging to single-family homes sank to 74.2% of closings from 75.8% of closings.
The average unit size of newly sold homes rose 18.2% year-over-year to 2,942 square feet in June 2016. The average size of newly sold homes moved from 2,431 square feet in May 2015 to 2,579 square feet in May 2016. An increase was also seen in May 2016 when the average size of new homes sold grew 6.1% to 2,579 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 6.3% of existing home closings, below 7.4% a year earlier. The percentage of existing home closings involving foreclosures went from 3.0% in June 2015 to 2.4% in June 2016 and REO closings moved from 4.4% of existing home closings in June 2015 to 3.9% in June 2016.