New home closings in the Santa Barbara, CA market dropped year-over-year in April, a downhill move after a hike in March 2016. New home closings saw a 42.3% decline from a year earlier to 15. This came on the heels of a 8.0% climb year-over-year in March.

A total of 394 new homes were sold during the 12 months that ended in April, down from 405 for the year that ended in March.

As a percentage of overall housing closings, new home closings made up 4.9%. This is a decline 7.4% of closings a year earlier. For new and existing homes, closings sank in April after also declining in March year-over-year.

Pricing and Mortgage Trends

In April, there was a 23.3% decline year-over-year in the average per-unit price of newly sold homes, settling at $496,467. This drop is a drop off from the 36.7% decline in March from a year earlier.

Average mortgage size on new homes declined year-over-year in contrast to new home prices. The average mortgage size declined to $410,634 in April, marking a 13.5% fall compared with last year. Average mortgage size slid 16.0% in March 2016 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 65.4% of new closings in April 2015 to all of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings declined to no part of closings from 34.6% of closings.

For all new homes sold, the average unit size rose 50.9% year-over-year to 2,147 square feet in April 2016.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 7.2% of existing home closings, down from 9.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.7% in April from 5.3% a year earlier and REO closings moved from 4.0% of existing home closings in April 2015 to 4.5% in April 2016.

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