The San Diego, CA market saw a drop in new home closings year-over-year in May, a drop following an increase in April 2016. New home closings saw a 9.1% decline from a year earlier to 150. This came after a 30.0% jump year-over-year in April.
A total of 2,151 new homes were sold during the 12 months that ended in May, down from 2,166 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 4.0% of overall housing closings. As a part of the whole, new home closings were 4.2% a year earlier. Following a year-over-year decline in April, closings of new and existing homes also slid year-over-year in May.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $807,708 in May, up 13.0% from last year. This boost is smaller than the 20.4% gain in April year-over-year.
In May 2016, average mortgage size on new homes went from $576,334 in May 2015 to $575,673 in May 2016. In April 2016, average mortgage size gained 14.9% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 49.7% of new home closings to half of closings while attached units have gone from 50.3% of closings to half of closings.
There was a 28.5% fall year-over-year in the average unit size of newly sold homes to 2,265 square feet in May 2016. This decline was opposite the price lift, a pattern also seen in April 2016 when the average size of newly sold homes fell 7.2% to 2,583 square feet. The average size of newly sold homes moved from 2,783 square feet in April 2015 to 2,583 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 8.4% of existing home closings, down from 9.5% a year earlier. The percentage of existing home closings involving foreclosures went from 4.1% in May 2015 to 3.8% in May 2016 and REO closings moved from 5.4% of existing home closings in May 2015 to 4.6% in May 2016.