The Los Angeles, CA market saw an increase in closings of new homes in December year-over-year, rallying back from a decline in November 2015. There was a 10.7% boost in new home closings from a year earlier. This came on the heels of a 4.0% drop year-over-year in November.
A total of 6,687 new homes were sold during the 12 months that ended in December, up from 6,601 for the year that ended in November.
New home closings were 7.9% of total number of closings, same as last year. Following a decline in November year-over-year, closings of new and existing homes grew year-over-year in December.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 3.7% in December to $954,312 per unit. This gain is smaller than the 8.7% rise in November year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size jumped 6.7% to $640,376 in December from a year earlier. In November 2015, average mortgage size grew 3.0% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units jumped from 33.8% of closings in December 2014 to 45.1% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings slid to 54.9% of closings from 66.2% of closings.
The average unit size of newly sold homes fell 10.6% year-over-year to 2,355 square feet in December 2015. The average size of newly sold homes moved from 2,535 square feet in November 2014 to 2,645 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 12.1% of closings, below 14.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.6% in December from 6.7% a year earlier and REO closings moved from 7.4% of existing home closings in December 2014 to 6.4% in December 2015.