New home closings in the San Luis Obispo, CA market remained steady year-over-year in May, remaining relatively unchanged after rising in April from the year earlier. Closings were unchanged from last year at 37. In the same month last year, closings rose 13.6%.
A total of 524 new homes were sold during the 12 months that ended in May, equal to the number of new homes sold for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 10.2% of closings, relatively stable from a year earlier. Closings of new and existing homes stayed level after increasing in April year-over-year.
Pricing and Mortgage Trends
In May, the average price for new home closings was $559,635, a 8.8% fall from last year. This drop compares to a 23.2% bump in April year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In May 2016, there was a 7.8% drop in the average mortgage size on new homes to $409,637. Average mortgage size climbed 3.5% in April 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units gained from 13.5% of closings in May 2015 to 32.4% of closings in May 2016. At the same time, the share belonging to single-family homes dropped to 67.6% of closings from 86.5% of closings.
There was a 13.1% surge year-over-year in the average unit size of newly sold homes to 2,174 square feet in May 2016. The average size of newly sold homes moved from 1,669 square feet in April 2015 to 1,873 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 3.4% of existing home closings, below 6.4% a year earlier. The percentage of existing home closings involving foreclosures went from 1.5% in May 2015 to 0.6% in May 2016 and REO closings as a percentage of existing home closings dropped to 2.8% from 4.9% a year earlier.