In the New Orleans, LA market in May, closings of new homes declined year-over-year, but the decline was less than the year-over-year decline in April. New home closings moved from 35 a year earlier to 19 after the figure moved from 41 in April 2015 to 13 in April 2016.
A total of 252 new homes were sold during the 12 months that ended in May, down from 268 for the year that ended in April.
Out of all housing closings, new home closings represented 1.3%. A year ago, 2.1% of total closings were new home closings. Following a year-over-year decline in April, closings of new and existing homes also sank year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes fell 16.9% year-over-year in May to $332,292 per unit. This fall is a drop off from the 17.2% decline in April from a year earlier.
The average mortgage size on newly sold homes saw a rise year-over-year in contrast to new home prices. The average mortgage size saw a 10.7% lift year-over-year to $293,532 in May. Average mortgage size on new homes went from $290,508 in April 2015 to $221,849 in April 2016.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units rose from 22.9% of closings in May 2015 to 26.3% of closings in May 2016. At the same time, the share belonging to single-family homes declined to 73.7% of closings from 77.1% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 19.5% of existing home closings, down from 23.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.1% in May from 11.8% a year earlier while REO closings as a percentage of existing home closings stayed level at 11.3%.