In November, the San Francisco, CA market saw a fall year-over-year in new home closings, and the percentage fall, which was steeper than October 2013, gave suggestions that the market may be worsening. New home closings saw a decline of 46.0% from the year earlier to 198. In comparison, new home closings in the same month last year saw a 38.7% drop year-over-year in October.
A total of 3,147 new homes were sold during the 12 months that ended in November, down from 3,316 for the year that ended in October.
New home closings represented 4.6% of overall housing closings. This is down from the a year earlier when new home closings represented 8.0% of total closings. Following a year-over-year decline in October, closings of new and existing homes also slid year-over-year in November.
Pricing and Mortgage Trends
In November, the average price of newly sold homes increased 9.3% year-over-year to $710,430 per unit. This rise is smaller than the 19.6% gain in October year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In November 2013, there was a 7.3% rise in the average mortgage size, reaching $538,637. Average mortgage size grew 21.5% in October 2013 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 increased from 51.5% in November 2012 to 75.8% of closings in November 2013. Meanwhile, attached units as a percentage of all new home closings sank to 24.2% of closings from 48.5% of closings.
The average unit size of newly sold homes remained steady year-over-year at 2,103 square feet in November 2013. The average size of newly sold homes moved from 2,174 square feet in October 2012 to 2,508 square feet in October 2013.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 13.5% of existing closings, lower than 28.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.1% in November from 12.4% a year earlier while REO closings as a percentage of existing home closings slid to 8.4% from 16.2% a year earlier.
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