The San Diego, CA market saw an increase in closings of new homes in November year-over-year, and there were hints that the market may be gaining momentum as the percentage bump proved better than October 2015. Closings climbed 27.6% from a year earlier to 199. This followed a 26.4% boost year-over-year in October.
A total of 1,950 new homes were sold during the 12 months that ended in November, up from 1,907 for the year that ended in October.
As a percentage of overall housing closings, new home closings made up 7.0%. This is a surge from 5.4% of closings a year earlier. Following a year-over-year increase in October, closings of new and existing homes fell year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes remained steady year-over-year in November at $788,564 per unit. This comes after a 11.7% lift in October year-over-year.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. It fell 1.4% in November from a year earlier, reaching $592,653. In October 2015, average mortgage size rose 10.4% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units rose from 38.5% of closings in November 2014 to 41.2% of closings in November 2015. At the same time, the share belonging to single-family homes slid to 58.8% of closings from 61.5% of closings.
The average unit size of newly sold homes slid 22.3% year-over-year to 2,297 square feet in November 2015. In October, the average size of new homes sold went from 3,006 square feet a year earlier to 1,680 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 10.7% of existing home closings, down from 11.5% a year earlier. The percentage of existing home closings involving foreclosures went from 6.0% in November 2014 to 5.7% in November 2015 and REO closings moved from 5.5% of existing home closings in November 2014 to 5.0% in November 2015.