New home closings jumped year-over-year in January in the San Francisco, CA market, but the market seemed to show signs of leveling out as the percentage gained was less than in December 2015. There was a 19.5% rise in new home closings from a year earlier. This came on the heels of a 58.9% rise year-over-year in December.
A total of 4,004 new homes were sold during the 12 months that ended in January, up from 3,952 for the year that ended in December.
Out of all housing closings, new home closings represented 11.4%. This is a gain from 9.6% of closings a year earlier. Closings of new and existing homes stayed level after increasing in December year-over-year.
Pricing and Mortgage Trends
In January, there was a 27.4% surge year-over-year in the average price of newly sold homes, reaching $1,090,337.00 per unit. This lift is an improvement over the 13.2% boost in December year-over-year.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. In January 2016, the average mortgage size was $727,069, up 20.6% from a year earlier. In December 2015, average mortgage size grew 14.0% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 36.7% of closings in January 2015 to 52.0% of closings in January 2016. Meanwhile, single-family home closings as a percentage of all new home closings slid to 48.0% of closings from 63.3% of closings.
For all new homes sold, the average unit size sank 56.5% year-over-year to 1,016 square feet in January 2016. This fall was opposite the price gain, a pattern also seen in December 2015 when the average size of newly sold homes slid 27.7% to 1,815 square feet. The average size of newly sold homes moved from 2,511 square feet in December 2014 to 1,815 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 10.9% of closings, below 14.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.9% in January from 6.0% a year earlier while REO closings as a percentage of existing home closings sank to 6.1% from 8.3% a year earlier.