There was a rise in new home closings in the San Luis Obispo, CA market in March year-over-year, but there were signs of market leveling as the percentage gain was less than February 2016. New home closings saw a 11.9% rise from a year earlier to 47. This came on the heels of a more than threefold hike year-over-year in February.
A total of 519 new homes were sold during the 12 months that ended in March, up from 514 for the year that ended in February.
As a percentage of overall housing closings, new home closings made up 13.9%. This is better than the 11.6% of closings a year earlier. After rising year-over-year in February, closings of new and existing homes dropped year-over-year in March.
Pricing and Mortgage Trends
In March, the average price for new home closings was $483,713, a 15.6% fall from last year. This drop is a drop off from the 18.9% decline in February from a year earlier.
The average mortgage size on newly sold homes slid year-over-year in contrast to the average price of new homes. It declined 24.9% in March from a year earlier to $323,810. In February 2016, average mortgage size on newly sold homes saw a 30.7% decline from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have fallen. Attached unit closings jumped from 14.3% of all closings in March 2015 to 48.9% of closings in March 2016. At the same time, the share belonging to single-family homes slid to 51.1% of closings from 85.7% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in March, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 11.0% of existing home closings, down from 11.6% a year earlier. The percentage of existing home closings involving foreclosures went from 4.7% in March 2015 to 3.8% in March 2016 and REO closings moved from 6.9% of existing home closings in March 2015 to 7.2% in March 2016.