There was a rise in closings of new homes in the San Luis Obispo, CA market in September year-over-year, but the percentage edged up less than August 2015, suggesting the market may be leveling out. There was a 47.6% jump in new home closings from a year earlier. This was after the housing market saw a 85.0% climb year-over-year in August.
A total of 390 new homes were sold during the 12 months that ended in September, up from 380 for the year that ended in August.
As a percentage of overall housing closings, new home closings made up 8.1% of overall housing closings. They accounted for 7.2% of closings a year earlier. Closings of new and existing homes increased year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped by 1.1% year-over-year to $555,029 per unit in September. This decline is a drop off from the 8.0% drop in August from a year earlier.
For newly sold homes, average mortgage size moved from $388,675 in September 2014 to $386,669 in September 2015. In August 2015, average mortgage size on newly sold homes saw a 12.7% fall from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 90.5% of new home closings to 90.3% of closings while attached units have gone from 9.5% of closings to 9.7% of closings.
There was a 2.0% decline year-over-year in the average unit size of newly sold homes to 1,827 square feet in September 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 4.8% of existing home closings, down from 8.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 2.3% in September from 4.4% a year earlier while REO closings as a percentage of existing home closings declined to 2.6% from 4.4% a year earlier.