In the San Francisco, CA market in May, new home closings slid year-over-year, signifying a decline after little movement in April from the year earlier. Closings slid 18.9% from a year earlier to 240. Closings were level in April from the year earlier.
A total of 3,966 new homes were sold during the 12 months that ended in May, down from 4,022 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 5.0% of overall housing closings. A year ago, 5.3% of total closings were new home closings. For new and existing homes, closings slid in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes dropped 12.6% year-over-year in May to $591,271 per unit. This drop is a drop off from the 15.5% decline in April from a year earlier.
For newly sold homes, average mortgage size moved from $482,348 in May 2012 to $478,079 in May 2013. In April 2013, average mortgage size declined 21.1% 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. Single-family home closings jumped from 44.6% of new closings in May 2012 to 83.3% of closings in May 2013. At the same time, the share of new home closings belonging to attached units fell to 16.7% of closings from 55.4% of closings.
For all new homes sold, the average unit size fell 5.6% year-over-year to 1,709 square feet in May 2013. In April, the average size of new homes sold went from 1,728 square feet a year earlier to 1,532 square feet. The drop in size was less sharp than the decline in average price of newly sold homes, making the movement similar to April 2013 when the average size saw a 11.3% declined to 1,532 square feet from a year earlier. A decrease in both the average size and price of newly sold homes was also seen in April 2013 when the average size gained 11.3% to 1,532 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 13.2% of existing home closings, below 34.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.5% in May from 11.8% a year earlier while REO closings as a percentage of existing home closings declined to 8.7% from 22.2% a year earlier.
Learn more about markets featured in this article: San Francisco, CA.