In June, the Baton Rouge, LA market saw a drop year-over-year in new home closings, but the market seemed to be suggesting improvement with a percentage decline less steep than in May 2015. New home closings saw a 63.4% decline from a year earlier to 30. This came after 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.
Out of all housing closings, new home closings made up 2.9%. This is down from the 7.6% of closings a year earlier. Following a year-over-year decline in May, closings of new and existing homes also fell year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 23.4% in June to $270,483 per unit. This boost is higher than the 2.2% surge in May year-over-year.
There was a bump year-over-year in the average mortgage size on new homes along with new home prices. It rose to $230,574 in June, a 14.5% rise. In May 2015, average mortgage size on newly sold homes saw a 4.7% surge 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. The share of new home closings belonging to attached units rose from 1.2% of closings in June 2014 to 6.7% of closings in June 2015. Meanwhile, single-family home closings as a percentage of all new home closings 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. Out of all existing home closings, foreclosures combined with REO closings accounted for 15.1% of closings, below 20.0% a year earlier. The percentage of existing home closings involving foreclosures sank 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.