In the Baton Rouge, LA market, new home closings slid year-over-year in June, but the percentage fall was not as steep as May 2015, giving suggestion that the market may be leveling out. Closings sank 63.4% from a year earlier to 30. This followed a 82.6% fall year-over-year in May.
A total of 595 new homes were sold during the 12 months that ended in June, down from 647 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 2.9%. This is down from the a year earlier when new home closings made up 7.6% of total closings. For new and existing homes, closings fell in June after also declining in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 23.4% lift year-over-year to $270,483 per unit in June. This hike is better than the 2.2% gain in May year-over-year.
Average mortgage size on new homes grew year-over-year along with new home prices. In June 2015, the average mortgage size was $230,574, up 14.5% from a year earlier. In May 2015, average mortgage size on newly sold homes saw a 4.7% gain year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings gained from 1.2% of all closings in June 2014 to 6.7% of closings in June 2015. At the same time, the share belonging to single-family homes slid to 93.3% of closings from 98.8% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 15.1% of existing closings, lower than 20.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.8% in June from 10.0% a year earlier while REO closings as a percentage of existing home closings fell to 8.3% from 9.9% a year earlier.