In September, there was an increase in closings of new homes in the San Francisco, CA market year-over-year, and the percentage surge, which was better than August 2012, suggested the market may be improving. There was a 62.4% climb in new home closings from a year earlier. This came after a 55.8% hike year-over-year in August.
A total of 3,359 new homes were sold during the 12 months that ended in September, up from 3,228 for the year that ended in August.
New home closings made up 7.3% of overall housing closings. This is a rise from 4.1% of closings a year earlier. After rising year-over-year in August, closings of new and existing homes fell year-over-year in September.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $587,053 in September 2011 to $590,896 in September 2012. This was on the heels of a 16.2% bump in August year-over-year.
The average mortgage size on new homes was unchanged from a year ago at $442,801. In August 2012, average mortgage size on newly sold homes saw a 7.2% rise year-over-year from a year earlier. For newly sold homes, the percentage of sale price being financed moved to 74.9% from a year earlier figure of 75.5%. In August 2012, the figure saw a 6.1 percentage point decline from the year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have increased from last year while closings of single-family homes have declined. Attached unit closings rose from 43.8% of all closings in September 2011 to 51.6% of closings in September 2012. Conversely, the share belonging to single-family homes slipped to 48.4% of closings from 56.2% of closings.
The average unit size of newly sold homes slid 27.6% year-over-year to 1,369 square feet in September 2012. In August, the average size of new homes sold went from 1,657 square feet a year earlier to 1,363 square feet.
Foreclosures and real estate owned (REO) closings decreased in September from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings accounted for 30.1% of existing home closings, below 48.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 15.6% in September from 26.5% a year earlier while REO closings as a percentage of existing home closings dipped to 14.6% from 22.1% a year earlier.
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