In June, closings of new homes rose year-over-year in the San Diego, CA market, recovering from a decline in May 2016. New home closings saw a 32.5% climb from a year earlier to 257. This came after a 8.5% fall year-over-year in May.
A total of 2,219 new homes were sold during the 12 months that ended in June, up from 2,156 for the year that ended in May.
Of 4,278 total closings, 257 were of new homes. This is better than the 4.2% of closings a year earlier. Following a year-over-year decline in May, closings of new and existing homes also declined year-over-year in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 17.4% lift year-over-year to $826,172 per unit in June. This rise is higher than the 13.1% gain in May year-over-year.
The average mortgage size on newly sold homes saw a hike year-over-year along with new home prices. The average mortgage size saw a 14.4% surge year-over-year to $604,573 in June. Average mortgage size went from $576,334 in May 2015 to $575,412 in May 2016.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes increased from 53.1% in June 2015 to 63.4% of closings in June 2016. Conversely, the share of new home closings belonging to attached units declined to 36.6% of closings from 46.9% of closings.
There was a 18.6% fall year-over-year in the average unit size of newly sold homes to 2,222 square feet in June 2016. For newly sold homes, an average size drop contrasting with an average price bump was also seen in May 2016 when the average size of newly sold homes fell 11.0% to 2,609 square feet. The average size of newly sold homes moved from 2,932 square feet in May 2015 to 2,609 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 8.3% of closings, below 8.8% a year earlier. The percentage of existing home closings involving foreclosures went from 4.2% in June 2015 to 3.3% in June 2016 and REO closings moved from 4.6% of existing home closings in June 2015 to 5.0% in June 2016.