In May, there was a drop year-over-year in new home closings in the Lafayette, LA market, and the decline was by a larger percentage than the April 2016. New home closings moved from 96 a year earlier to 10 after the figure moved from 92 in April 2015 to 10 in April 2016.
A total of 492 new homes were sold during the 12 months that ended in May, down from 578 for the year that ended in April.
New home closings represented 10 out of the 332 total closings, which is a smaller percentage than the 96 of 415 total closings a year earlier. For new and existing homes, closings sank in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $374,533, an increase from $281,487 a year earlier. This came after a 16.3% drop in April from a year earlier.
From the year-ago figure of $234,598, the average mortgage size on new homes moved up to $306,860. Average mortgage size on new homes went from $231,021 in April 2015 to $196,441 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings made up 14.3% of existing home closings, up from 11.3% a year earlier. The percentage of existing home closings involving foreclosures rose to 7.8% in May from 5.6% a year earlier and REO closings moved from 5.6% of existing home closings in May 2015 to 6.5% in May 2016.