In the San Luis Obispo, CA market, closings of new homes climbed year-over-year in February, and with a stronger boost than January 2016, there are signs the market may be bolstering. Closings rose more than threefold from a year earlier to 55. This came after a more than twofold rise year-over-year in January.
A total of 512 new homes were sold during the 12 months that ended in February, up from 474 for the year that ended in January.
New home closings represented 20.8% of overall housing closings. This is an increase on a percentage basis, as new home closings were 7.1% of total closings a year ago. Following a year-over-year increase in January, closings of new and existing homes also climbed year-over-year in February.
Pricing and Mortgage Trends
The average price of newly sold homes dropped 18.9% year-over-year in February to $436,627 per unit. This fall compares to a 11.7% lift in January year-over-year.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. Average mortgage size fell 30.7% to $290,613 in February from a year earlier. In January 2016, average mortgage size increased 18.4% 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. The share of new home closings belonging to attached units climbed from 5.9% of closings in February 2015 to 54.5% of closings in February 2016. Conversely, the share belonging to single-family homes sank to 45.5% of closings from 94.1% of closings.
The average unit size of newly sold homes jumped 43.3% year-over-year to 2,960 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 7.2% of existing closings, lower than 8.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.4% in February from 5.4% a year earlier while REO closings as a percentage of existing home closings rose to 4.8% from 3.6%.