In the New Orleans, LA market, new home closings sank year-over-year in December, and the decline was by a larger percentage than the November 2015. New home closings moved from 27 a year earlier to 18 after the figure moved from 10 in November 2014 to 8 in November 2015.
A total of 242 new homes were sold during the 12 months that ended in December, down from 251 for the year that ended in November.
New home closings accounted for 1.5% of overall housing closings. A year ago, new home closings represented 2.1%. Following a year-over-year decline in November, closings of new and existing homes also slid year-over-year in December.
Pricing and Mortgage Trends
The average price of newly sold homes dropped 37.7% year-over-year in December to $346,354 per unit. This decline compares to a 39.7% lift in November year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In December 2015, average mortgage size declined 11.4% from a year earlier to $288,125. Average mortgage size on new homes went from $222,427 in November 2014 to $386,930 in November 2015.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units gained from 29.6% of closings in December 2014 to 33.3% of closings in December 2015. Conversely, the share belonging to single-family homes declined to 66.7% of closings from 70.4% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 22.9% of closings, below 28.7% a year earlier. The percentage of existing home closings involving foreclosures went from 11.4% in December 2014 to 10.7% in December 2015 and REO closings as a percentage of existing home closings sank to 12.1% from 17.3% a year earlier.