There was a rise in new home closings in the Los Angeles, CA market in February year-over-year, and the market seemed to be improving as the percentage lift was larger than that of January 2016. Closings climbed 24.4% from a year earlier to 489. In comparison, new home closings in the same month last year saw a 6.6% jump year-over-year in January.
A total of 6,822 new homes were sold during the 12 months that ended in February, up from 6,726 for the year that ended in January.
New home closings accounted for 6.5% of overall housing closings. This is an increase on a percentage basis, as new home closings were 5.4% of total closings a year ago. Closings of new and existing homes increased year-over-year in February after also rising in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 9.5% in February to $926,515 per unit. This bump is smaller than the 28.6% lift in January year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. In February 2016, the average mortgage size on newly sold homes saw a 1.2% hike from a year earlier. In January 2016, average mortgage size rose 17.3% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units increased from 31.8% of closings in February 2015 to 40.1% of closings in February 2016. Conversely, the share belonging to single-family homes dropped to 59.9% of closings from 68.2% of closings.
There was a 29.3% lift year-over-year in the average unit size of newly sold homes to 3,066 square feet in February 2016. In January, the average size of new homes sold went from 2,648 square feet a year earlier to 2,382 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 13.0% of closings, below 15.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.8% in February from 7.2% a year earlier while REO closings as a percentage of existing home closings sank to 7.2% from 8.3% a year earlier.