The Baton Rouge, LA market saw a drop in new home closings year-over-year in May, but the percentage drop was not as steep as April 2016, giving suggestion that the market may be evening out. New home closings saw a fall of 39.4% from the year earlier to 60. This came after a 77.3% fall year-over-year in April.
A total of 769 new homes were sold during the 12 months that ended in May, down from 808 for the year that ended in April.
Out of all housing closings, new home closings represented 5.6%. This is down from the a year earlier when new home closings accounted for 9.9% of total closings. After dropping in April from a year earlier, closings of new and existing homes gained year-over-year in May.
Pricing and Mortgage Trends
In May, the average price of newly sold homes grew 15.1% year-over-year to $298,914 per unit. This rise is an improvement over the 11.1% boost in April year-over-year.
For newly sold homes, the average mortgage size saw a boost year-over-year along with new home prices. It increased to $260,621 in May, a 12.7% gain. Average mortgage size increased 18.8% in April 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016. Single-family home closings have made up all of new home closings while attached unit closings have represented no part of closings.
For all new homes sold, the average unit size fell 34.7% year-over-year to 1,503 square feet in May 2016. This fall was opposite the price boost, a pattern also seen in April 2016 when the average size of newly sold homes sank 31.2% to 1,428 square feet. The average size of newly sold homes moved from 2,075 square feet in April 2015 to 1,428 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 12.6% of closings, below 16.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.6% in May from 7.4% a year earlier while REO closings as a percentage of existing home closings slid to 7.0% from 9.3% a year earlier.