In the Los Angeles, CA market in January, new home closings increased year-over-year, but signs of market leveling were showing as the percentage rise was less than December 2015. There was a 6.0% climb in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 10.8% hike year-over-year in December.
A total of 6,705 new homes were sold during the 12 months that ended in January, up from 6,684 for the year that ended in December.
Of the total number of closings, new home closings made up 4.7%. A year ago, 4.6% of total closings were new home closings. Closings of new and existing homes climbed year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 28.4% in January to $1,053,953.00 per unit. This surge is an improvement over the 3.6% gain in December year-over-year.
The average mortgage size on newly sold homes saw a boost year-over-year along with new home prices. In January 2016, the average mortgage size on newly sold homes saw a 17.3% surge from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 6.6% bump year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings jumped from 31.0% of all closings in January 2015 to 40.7% of closings in January 2016. Conversely, the share belonging to single-family homes slid to 59.3% of closings from 69.0% of closings.
For all new homes sold, the average unit size dropped 10.0% year-over-year to 2,382 square feet in January 2016. For newly sold homes, an average size fall contrasting with an average price lift was also seen in December 2015 when the average size of newly sold homes dropped 10.5% to 2,369 square feet. The average size of newly sold homes moved from 2,646 square feet in December 2014 to 2,369 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.5% of existing home closings, below 15.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 6.3% in January from 7.3% a year earlier and REO closings moved from 7.8% of existing home closings in January 2015 to 7.2% in January 2016.