There was a rise in closings of new homes in the San Francisco, CA market in June year-over-year, but there were signs of market leveling as the percentage rise was less than May 2016. Closings increased 6.0% from a year earlier to 337. This came after a 33.5% jump year-over-year in May.
A total of 4,312 new homes were sold during the 12 months that ended in June, up from 4,293 for the year that ended in May.
New home closings accounted for 6.7% of overall housing closings. A year ago, new home closings accounted for 5.8%. For new and existing homes, closings fell in June after also declining in May year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes increased year-over-year 24.7% in June to $1,044,080.00 per unit. This gain is smaller than the 25.7% surge in May year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, the average mortgage size was $719,161, up 14.8% from a year earlier. Average mortgage size grew 9.6% in May 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 increased from 24.2% of closings in June 2015 to 25.8% of closings in June 2016. Conversely, the share belonging to single-family homes dropped to 74.2% of closings from 75.8% of closings.
The average unit size of newly sold homes jumped 18.2% year-over-year to 2,942 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size grew 6.1% to 2,579 square feet. The average size of newly sold homes moved from 2,431 square feet in May 2015 to 2,579 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 6.3% of closings, below 7.4% a year earlier. The percentage of existing home closings involving foreclosures went from 3.0% in June 2015 to 2.4% in June 2016 and REO closings moved from 4.4% of existing home closings in June 2015 to 3.9% in June 2016.