Closings of new homes in the New Orleans, LA market dropped year-over-year in October, but the decline was less than the year-over-year decline in September. New home closings moved from 12 a year earlier to 3 after the figure moved from 11 in September 2014 to 1 in September 2015.
A total of 129 new homes were sold during the 12 months that ended in October, down from 138 for the year that ended in September.
3 of the 529 total closings were new home closings, a shift on a percentage basis from 12 out of 1,320 a year earlier. Following a year-over-year decline in September, closings of new and existing homes also declined year-over-year in October.
Pricing and Mortgage Trends
The average price of new homes was $318,633, an increase from $290,205 a year earlier. This came after a 16.1% decline in September from a year earlier.
From the year-ago figure of $185,204, the average mortgage size on new homes moved up to $229,600. Average mortgage size on new homes went from $194,349 in September 2014 to $208,600 in September 2015.
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.
Foreclosures and real estate owned (REO) closings continued to increase in October from a year earlier and remained a drag on the market. Together, foreclosures plus REO closings accounted for 35.6% of existing home closings, up from 29.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 15.8% in October from 16.8% a year earlier while REO closings as a percentage of existing home closings increased to 19.8% from 13.1%.