There was an increase in new home closings in the Los Angeles, CA market in April year-over-year, but the percentage lift was less pronounced than March 2016, indicating the market may be leveling out. New home closings saw a rise of 12.7% from the year earlier to 568. In comparison, new home closings in the same month last year saw a 14.9% boost year-over-year in March.
A total of 7,019 new homes were sold during the 12 months that ended in April, up from 6,955 for the year that ended in March.
As a percentage of overall housing closings, new home closings represented 5.7%. This is better than the 4.5% of closings a year earlier. Closings of new and existing homes slid year-over-year in April after remaning steady in March year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 6.4% year-over-year in April to $915,533 per unit. This gain is an improvement over the 3.0% boost in March year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 8.2% bump year-over-year to $623,123 in April. In March 2016, average mortgage size on newly sold homes saw a 10.4% hike year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units rose from 32.1% of closings in April 2015 to 40.5% of closings in April 2016. At the same time, the share belonging to single-family homes dropped to 59.5% of closings from 67.9% of closings.
For all new homes sold, the average unit size gained 12.2% year-over-year to 2,629 square feet in April 2016. The average size of newly sold homes moved from 2,346 square feet in March 2015 to 2,488 square feet in March 2016. An increase in both the average size and price of newly sold homes was also seen in March 2016 when the average size jumped 6.1% to 2,488 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 10.4% of closings, below 12.4% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.1% in April from 6.0% a year earlier while REO closings as a percentage of existing home closings stayed level at 6.4%.