Closings of new homes dropped year-over-year in August in the San Jose, CA market, curving down after an increase in July 2015. New home closings saw a fall of 5.4% from the year earlier to 158. In comparison, new home closings in the same month last year saw a 38.8% hike year-over-year in July.
A total of 2,225 new homes were sold during the 12 months that ended in August, down from 2,234 for the year that ended in July.
Out of all housing closings, new home closings represented 8.8%. This is a fall 10.5% of closings a year earlier. For new and existing homes, closings jumped year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in August to $867,915 per unit, a rise of 1.1%. This lift is smaller than the 13.3% hike in July year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It slid 2.9% in August from a year earlier, reaching $608,143. In July 2015, average mortgage size increased 7.9% 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. Attached unit closings rose from 56.3% of all closings in August 2014 to 62.0% of closings in August 2015. Conversely, the share belonging to single-family homes fell to 38.0% of closings from 43.7% of closings.
For all new homes sold, the average unit size sank 3.6% year-over-year to 2,126 square feet in August 2015. The average size of newly sold homes moved from 2,157 square feet in July 2014 to 2,156 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 5.2% of existing home closings, down from 5.5% a year earlier. The percentage of existing home closings involving foreclosures went from 2.2% in August 2014 to 2.0% in August 2015 and REO closings as a percentage of existing home closings stayed level at 3.2%.