New home closings fell year-over-year in November in the Baton Rouge, LA market, and there were suggestions of worsening market conditions as the percentage drop was steeper than October 2015. There was a 70.1% drop in new home closings from a year earlier. This followed a 62.0% drop year-over-year in October.
A total of 412 new homes were sold during the 12 months that ended in November, down from 459 for the year that ended in October.
As a percentage of overall housing closings, new home closings made up 3.1%. This is down from the a year earlier when new home closings accounted for 10.1% of total closings. For new and existing homes, closings fell in November after also declining in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in November to $270,326 per unit, a rise of 3.2%. This gain is smaller than the 22.8% hike in October year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In November 2015, there was a 8.6% hike in the average mortgage size, reaching $244,935. In October 2015, average mortgage size on newly sold homes saw a 14.7% bump year-over-year 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. Attached unit closings climbed from no part of all closings in November 2014 to 5.0% of closings in November 2015. At the same time, the share belonging to single-family homes dropped to 95.0% of closings from all of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 16.6% of existing home closings, below 24.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.0% in November from 10.9% a year earlier while REO closings as a percentage of existing home closings dropped to 9.6% from 13.4% a year earlier.