In the San Diego, CA market, new home closings grew year-over-year in April, but the increased on a percentage basis less sharlpy than March 2016, showing signs of market stabilization. There was a 30.0% hike in new home closings from a year earlier. This was after the housing market saw a 31.8% hike year-over-year in March.
A total of 2,166 new homes were sold during the 12 months that ended in April, up from 2,124 for the year that ended in March.
Of 3,790 total closings, 182 were of new homes. This is a surge from 3.3% of closings a year earlier. Following a year-over-year increase in March, closings of new and existing homes sank year-over-year in April.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 20.4% in April to $801,310 per unit. This boost is better than the 8.7% rise in March year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. It gained to $584,212 in April, a 14.9% gain. Average mortgage size increased 11.9% in March 2016 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. Attached unit closings jumped from 33.6% of all closings in April 2015 to 41.8% of closings in April 2016. Conversely, the share belonging to single-family homes fell to 58.2% of closings from 66.4% of closings.
The average unit size of newly sold homes slid 7.2% year-over-year to 2,583 square feet in April 2016. For newly sold homes, an average size fall contrasting with an average price bump was also seen in March 2016 when the average size of newly sold homes declined 17.0% to 2,370 square feet. The average size of newly sold homes moved from 2,856 square feet in March 2015 to 2,370 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 8.3% of closings, below 11.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 3.4% in April from 5.7% a year earlier and REO closings moved from 5.7% of existing home closings in April 2015 to 5.0% in April 2016.