San Jose, CA - Latest New Home Sales Numbers Suggest Market Rise Strengthening.
Posted on: May 07, 2012 09:43:42 AM
There was a rise in new home sales in the San Jose, CA market in February year-over-year, and the percentage gain was higher than January 2012, implying the market may be improving. New home sales climbed by 45.5% in February 2012 from a year earlier, after sales saw a 1.7% rise in January from the year earlier.
A total of 1,018 new homes were sold during the 12 months that ended in February, up from 998 for the year that ended in January.
As a percentage of overall housing sales, new home sales made up 4.4%. This is an increase on a percentage basis, as new home sales were 3.1% of total sales a year ago. Following a decline in January year-over-year, sales of new and existing homes rose year-over-year in February.
Advertisement
Pricing and Mortgage Trends
In February, there was an 19.0% drop year-over-year in the average per-unit price of newly sold homes, settling at $565,548. This decline is larger than the 9.1% decline in January from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It fell to $435,440 in February, a 12.3% drop. Average mortgage size fell 2.9% in January 2012 from a year earlier. For new home sales, the percentage of the sale price that was being financed increased 5.8 percentage points year-over-year to 77.0% in February 2012. This was another rise after January 2012 when there was a 4.8 percentage point rise from a year earlier.
San Jose, CA - Latest New Home Sales Numbers Suggest Market Rise Strengthening.
Posted on: May 07, 2012 09:43:42 AM
There was a rise in new home sales in the San Jose, CA market in February year-over-year, and the percentage gain was higher than January 2012, implying the market may be improving. New home sales climbed by 45.5% in February 2012 from a year earlier, after sales saw a 1.7% rise in January from the year earlier.
A total of 1,018 new homes were sold during the 12 months that ended in February, up from 998 for the year that ended in January.
As a percentage of overall housing sales, new home sales made up 4.4%. This is an increase on a percentage basis, as new home sales were 3.1% of total sales a year ago. Following a decline in January year-over-year, sales of new and existing homes rose year-over-year in February.
Pricing and Mortgage Trends
In February, there was an 19.0% drop year-over-year in the average per-unit price of newly sold homes, settling at $565,548. This decline is larger than the 9.1% decline in January from a year earlier.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It fell to $435,440 in February, a 12.3% drop. Average mortgage size fell 2.9% in January 2012 from a year earlier. For new home sales, the percentage of the sale price that was being financed increased 5.8 percentage points year-over-year to 77.0% in February 2012. This was another rise after January 2012 when there was a 4.8 percentage point rise from a year earlier.
Other Market Trends
The percentage of new home sales belonging to single-family homes has risen from last year while the portion of new home sales belonging to attached units has dropped. The share of new home sales belonging to single-family homes rose from 31.8% in February 2011 to 48.4% of sales in February 2012. Meanwhile, attached units as a percentage of all new home sales slipped to 51.6% of sales from 68.2% of sales.
There was a 13.0% bump year-over-year in the average unit size of newly sold homes to 1,811 square feet in February 2012. The average size of newly sold homes moved from 1,508 square feet in January 2011 to 1,515 square feet in January 2012.
Foreclosures and real estate owned (REO) sales remained a drag on the market. Combined, foreclosures plus REO sales accounted for 39.3% of existing home sales. They made up 45.8% in February 2011. The percentage of existing home sales involving foreclosures declined to 19.6% in February from 21.9% a year earlier while REO sales as a percentage of existing home sales dipped to 19.6% from 23.8% a year earlier.
Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in this market area.
Source: Housing Intelligence