New home closings in the San Jose, CA market slid year-over-year in December, but with a percentage fall not as steep as November 2015, there are suggestions that the market may be leveling out. There was a 1.1% drop in new home closings from a year earlier. This came after a 23.4% drop year-over-year in November.
A total of 2,183 new homes were sold during the 12 months that ended in December, down from 2,186 for the year that ended in November.
New home closings represented 15.7% of overall housing closings. This is down from the a year earlier when new home closings made up 17.9% of total closings. Following a fall in November year-over-year, closings of new and existing homes grew year-over-year in December.
Pricing and Mortgage Trends
In December, the average price of newly sold homes jumped year-over-year to $871,885 per unit, a 10.0% gain. This boost compares to a 3.8% drop in November from a year earlier.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In December 2015, the average mortgage size on newly sold homes saw a 7.3% hike from a year earlier. Average mortgage size slid 2.0% in November 2015 from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 45.3% in December 2014 to 59.0% of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings declined to 41.0% of closings from 54.7% of closings.
The average unit size of newly sold homes went from 1,980 square feet in December 2014 to 1,962 square feet in December 2015. In November, the average size of new homes sold went from 1,955 square feet a year earlier to 1,555 square feet. In November 2015, the average size of newly sold homes dropped 20.5% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 5.6% of existing home closings, below 8.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.0% in December from 4.1% a year earlier while REO closings as a percentage of existing home closings sank to 2.6% from 4.2% a year earlier.