In the San Diego, CA market, new home closings dropped year-over-year in September, drawing a downward slope off of a rise in August 2015. New home closings saw a fall of 9.0% from the year earlier to 191. This was after the housing market saw a 7.9% hike year-over-year in August.
A total of 1,866 new homes were sold during the 12 months that ended in September, down from 1,885 for the year that ended in August.
Out of all housing closings, new home closings accounted for 5.1%. This is down from the a year earlier when new home closings made up 6.3% of total closings. Closings of new and existing homes climbed year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
In September, the average value of new homes saw a 28.3% lift year-over-year as it grew to $884,650 per unit. This bump is an improvement over the 6.5% gain in August year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. In September 2015, the average mortgage size was $638,207, a 27.7% hike from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 6.0% lift year-over-year 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 rose from 54.3% in September 2014 to 73.3% of closings in September 2015. Meanwhile, attached units as a percentage of all new home closings slid to 26.7% of closings from 45.7% of closings.
For all new homes sold, the average unit size climbed 6.2% year-over-year to 3,031 square feet in September 2015. In August, the average size of new homes sold went from 3,188 square feet a year earlier to 3,085 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 10.3% of existing closings, lower than 11.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.2% in September from 5.5% a year earlier and REO closings moved from 5.6% of existing home closings in September 2014 to 6.1% in September 2015.