New home closings in the San Jose, CA market slid year-over-year in November, and with a percentage fall steeper than October 2015, there were signs the market may be worsening. New home closings saw a fall of 29.3% from the year earlier to 169. This came after a 3.1% decline year-over-year in October.
A total of 2,041 new homes were sold during the 12 months that ended in November, down from 2,111 for the year that ended in October.
Out of all housing closings, new home closings represented 13.4%. This is down from the a year earlier when new home closings accounted for 16.5% of total closings. Following a year-over-year decline in October, closings of new and existing homes also fell year-over-year in November.
Pricing and Mortgage Trends
Average price of newly sold homes had a 1.2% fall year-over-year to $804,571 per unit in November. This drop compares to a 11.8% bump in October year-over-year.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. It dropped 1.1% in November from a year earlier to $592,618. In October 2015, average mortgage size on newly sold homes saw a 7.4% gain 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. The share of new home closings belonging to single-family homes jumped from 41.0% in November 2014 to 55.6% of closings in November 2015. At the same time, the share of new home closings belonging to attached units dropped to 44.4% of closings from 59.0% of closings.
For all new homes sold, the average unit size sank 19.7% year-over-year to 1,570 square feet in November 2015. In October, the average size of new homes sold went from 2,033 square feet a year earlier to 1,699 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 5.3% of existing home closings, below 6.1% a year earlier. The percentage of existing home closings involving foreclosures went from 2.8% in November 2014 to 2.7% in November 2015 and REO closings moved from 3.3% of existing home closings in November 2014 to 2.7% in November 2015.