In the San Jose, CA market in March, closings of new homes dropped year-over-year, but the market seemed to be hinting at improvement with a percentage decline less steep than in February 2016. There was a 10.3% fall in new home closings from a year earlier. This followed a 22.3% decline year-over-year in February.
A total of 2,132 new homes were sold during the 12 months that ended in March, down from 2,151 for the year that ended in February.
Of the total number of closings, new home closings made up 11.1%. As a part of the whole, new home closings were 11.3% a year earlier. Closings of new and existing homes slid year-over-year in March after also falling in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes dropped 7.6% year-over-year in March to $878,671 per unit. This fall is a drop off from the 10.2% decline in February from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. It fell 2.3% in March from a year earlier, reaching $633,653. Average mortgage size declined 4.5% in February 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 37.0% in March 2015 to 49.1% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings slid to 50.9% of closings from 63.0% of closings.
The average unit size of newly sold homes fell 18.2% year-over-year to 1,680 square feet in March 2016. In February, the average size of new homes sold went from 2,025 square feet a year earlier to 1,399 square feet. A decline was also seen in February 2016 when the average size of new homes sold declined 30.9% to 1,399 square feet.
Foreclosures and real estate owned (REO) closings rose in March from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 5.5% of existing home closings, higher than 5.2% a year earlier. The percentage of existing home closings involving foreclosures went from 2.3% in March 2015 to 2.9% in March 2016 and REO closings moved from 2.9% of existing home closings in March 2015 to 2.6% in March 2016.