Closings of new homes rose year-over-year in July in the San Luis Obispo, CA market, but the market seemed to show signs of stabilizing as the percentage increased was less than in June 2015. There was a 21.1% boost in new home closings from a year earlier. This came on the heels of a more than twofold climb year-over-year in June.
A total of 366 new homes were sold during the 12 months that ended in July, up from 358 for the year that ended in June.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 10.8%. For new and existing homes, closings jumped year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $543,408 per unit in July, up 4.2%from a year earlier. This gain is smaller than the 21.8% bump in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2015, the average mortgage size was $381,611, a 5.0% gain from a year earlier. Average mortgage size rose 16.0% in June 2015 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. The share of new home closings belonging to attached units gained from 13.2% of closings in July 2014 to 26.1% of closings in July 2015. Conversely, the share belonging to single-family homes sank to 73.9% of closings from 86.8% of closings.
The average unit size of newly sold homes slid 23.7% year-over-year to 1,500 square feet in July 2015. In June, the average size of new homes sold went from 1,954 square feet a year earlier to 1,946 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 5.0% of closings, below 10.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.8% in July from 4.7% a year earlier while REO closings as a percentage of existing home closings declined to 3.2% from 5.4% a year earlier.