New home closings in the New Orleans, LA market slid year-over-year in June, and the decline was by a larger percentage than the May 2015. New home closings moved from 19 a year earlier to 2 after the figure moved from 16 in May 2014 to 8 in May 2015.
A total of 128 new homes were sold during the 12 months that ended in June, down from 145 for the year that ended in May.
New home closings were 2 out of the 628 total closings, down on a percentage basis from 19 of 1,380 a year earlier. For new and existing homes, closings dropped in June after also declining in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $605,000, an increase from $264,256 a year earlier. This followed a 9.1% drop in May from a year earlier.
Average mortgage size on new homes rose from $224,311 to $405,000. Average mortgage size on new homes went from $246,825 in May 2014 to $207,389 in May 2015.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
Foreclosures and real estate owned (REO) closings continued to increase in June from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings represented 29.9% of existing home closings, above 25.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 16.0% in June from 12.0% a year earlier and REO closings moved from 13.7% of existing home closings in June 2014 to 13.9% in June 2015.