Total new-home closings: 2,116
Population: 1,952,872
The good: Unemployment remains in a nosedive and permits were up as of March 2015.
The bad: Though leveling, decreases showed in early 2015.
The bottom line: With relatively modest decreases in activity occurring despite steady increases in new-home prices, the region shows continued promise for builders.
After a tough month in February 2015—including a 25.6% year-over-year decline in new-home closings—in February, the new-home market showed promise of leveling out around San Jose, with a more modest 3% year-over-year decrease. Total new-home closings over the 12-month period ending in March also showed a modest drop, down to 2,099 from 2,104 a year earlier. With the average new-home price showing a steady increase, an increase in year-to-date permit figures of 24% year over year in March 2015 may be a positive indicator of what builders feel this market will bear. Add to that unemployment levels that have been in a steady nosedive since 2012, dropping year over year in March 2015 from 5.5% to 4.2%, and it’s no wonder they continue to show confidence in the region.
