In the San Diego, CA market in July, closings of new homes slid year-over-year, and with a percentage drop steeper than June 2015, there were signs the market may be worsening. Closings sank 20.1% from a year earlier to 127. This followed a 1.6% decline year-over-year in June.
A total of 1,823 new homes were sold during the 12 months that ended in July, down from 1,855 for the year that ended in June.
Out of all housing closings, new home closings made up 2.9%. This is down from the a year earlier when new home closings accounted for 4.3% of total closings. For new and existing homes, closings increased year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 10.3% boost year-over-year in the average price of newly sold homes, reaching $809,895 per unit. This gain compares to a 6.2% fall in June from a year earlier.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. The average mortgage size rose to $605,558 in July, marking a 10.0% lift compared with a year earlier. Average mortgage size fell 5.4% in June 2015 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 jumped from 25.2% of closings in July 2014 to 43.3% of closings in July 2015. Conversely, the share belonging to single-family homes declined to 56.7% of closings from 74.8% of closings.
There was a 12.5% decline year-over-year in the average unit size of newly sold homes to 2,570 square feet in July 2015. The average size of newly sold homes moved from 3,119 square feet in June 2014 to 2,362 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 8.9% of existing home closings, below 11.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.2% in July from 5.4% a year earlier while REO closings as a percentage of existing home closings sank to 4.7% from 5.9% a year earlier.