Closings of new homes fell year-over-year in June in the Santa Barbara, CA market, but the percentage drop was not as steep as May 2016, giving suggestion that the market may be stabilizing. Closings declined 28.6% from a year earlier to 20. This was after the housing market saw a 60.9% fall year-over-year in May.
A total of 358 new homes were sold during the 12 months that ended in June, down from 366 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 5.3%. This is a drop 7.1% of closings a year earlier. For new and existing homes, closings dropped in June after also declining in May year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes grew year-over-year 8.1% in June to $559,400 per unit. This hike is smaller than the 9.5% bump in May year-over-year.
For newly sold homes, the average mortgage size saw a hike year-over-year along with new home prices. In June 2016, there was a 10.9% gain in the average mortgage size, reaching $422,542. Average mortgage size increased 2.5% in May 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes gained from 82.1% in June 2015 to 95.0% of closings in June 2016. At the same time, the share of new home closings belonging to attached units sank to 5.0% of closings from 17.9% of closings.
The average unit size of newly sold homes increased 54.4% year-over-year to 2,680 square feet in June 2016. The average size of newly sold homes moved from 1,904 square feet in May 2015 to 2,339 square feet in May 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size rose 22.8% to 2,339 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 7.8% of existing home closings, down from 11.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 3.1% in June from 5.4% a year earlier while REO closings as a percentage of existing home closings declined to 4.7% from 6.3% a year earlier.