In the Santa Barbara, CA market, closings of new homes slid year-over-year in November, but with a percentage fall less steep than October 2015, there are signs the market may be stabilizing. New home closings saw a drop of 9.7% from the year earlier to 28. This was after the housing market saw a 12.5% drop year-over-year in October.
A total of 403 new homes were sold during the 12 months that ended in November, down from 406 for the year that ended in October.
Of the total number of closings, new home closings made up 10.5%. As a part of the whole, new home closings were 11.1% a year earlier. Following a year-over-year decline in October, closings of new and existing homes also dropped year-over-year in November.
Pricing and Mortgage Trends
Average price of newly sold homes had a 2.7% fall year-over-year to $484,875 per unit in November. This decline compares to a 35.0% rise in October year-over-year.
Average mortgage size on new homes went from $383,301 in November 2014 to $385,140 in November 2015. In October 2015, average mortgage size gained 34.2% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings climbed from 80.6% of new closings in November 2014 to 92.9% of closings in November 2015. At the same time, the share of new home closings belonging to attached units dropped to 7.1% of closings from 19.4% of closings.
The average unit size of newly sold homes fell 14.3% year-over-year to 1,473 square feet in November 2015. In October, the average size of new homes sold went from 1,862 square feet a year earlier to 2,176 square feet.
Foreclosures and real estate owned (REO) closings increased in November from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 11.3% of existing home closings, up from 10.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 7.5% in November from 4.8% a year earlier while REO closings as a percentage of existing home closings declined to 3.8% from 5.6% a year earlier.