In the San Francisco, CA market, closings of new homes jumped year-over-year in November, and there were signals of strengthening market conditions as the percentage bump was an greater than October 2015. There was a 22.1% boost in new home closings from a year earlier. This came on the heels of a 13.5% rise year-over-year in October.
A total of 3,678 new homes were sold during the 12 months that ended in November, up from 3,610 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 10.0%. This marks a rise from 8.1% of total closings a year earlier. Following a year-over-year rise in October, closings of new and existing homes sank year-over-year in November.
Pricing and Mortgage Trends
In November, the average price of newly sold homes dropped 5.7% year-over-year to $802,255 per unit. This decline compares to a 9.3% rise in October year-over-year.
In November 2015, average mortgage size on newly sold homes moved from $597,427 to $600,842 from November 2014. In October 2015, average mortgage size climbed 6.0% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings jumped from 28.0% of all closings in November 2014 to 40.3% of closings in November 2015. Conversely, the share belonging to single-family homes sank to 59.7% of closings from 72.0% of closings.
There was a 33.6% fall year-over-year in the average unit size of newly sold homes to 1,508 square feet in November 2015. The average size of newly sold homes moved from 2,468 square feet in October 2014 to 1,268 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 7.0% of closings, below 9.2% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.3% in November from 4.5% a year earlier and REO closings moved from 4.7% of existing home closings in November 2014 to 3.7% in November 2015.