In July, there was a drop year-over-year in new home closings in the Baton Rouge, LA market, and the percentage fall was steeper than June 2015, suggesting the market may be worsening. There was a 73.1% drop in new home closings from a year earlier. This came after a 63.4% drop year-over-year in June.
A total of 532 new homes were sold during the 12 months that ended in July, down from 608 for the year that ended in June.
Out of all housing closings, new home closings made up 2.7%. This is a drop 9.9% of closings a year earlier. Closings of new and existing homes fell year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 12.8% surge year-over-year to $268,433 per unit in July. This boost is smaller than the 23.4% bump in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. Average mortgage size rose 15.9% to $248,339 in July from a year earlier. In June 2015, average mortgage size on newly sold homes saw a 14.5% hike year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 97.1% in July 2014 to all of closings in July 2015. Conversely, the share of new home closings belonging to attached units slid to no part of closings from 2.9% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 17.2% of existing closings, lower than 20.1% a year earlier. The percentage of existing home closings involving foreclosures stayed at 8.3% of closings in July from a year earlier while REO closings as a percentage of existing home closings sank to 8.9% from 11.8% a year earlier.