In September, closings of new homes in the Los Angeles, CA market rose year-over-year, rebounding from a year-over-year fall in August 2015. Closings climbed 12.0% from a year earlier to 578. This was after the housing market saw a 21.3% fall year-over-year in August.
A total of 6,502 new homes were sold during the 12 months that ended in September, up from 6,440 for the year that ended in August.
As a percentage of overall housing closings, new home closings represented 5.1% of overall housing closings. A year ago, 5.4% of total closings were new home closings. Closings of new and existing homes grew year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $928,945 per unit in September, up 7.5%from a year earlier. This bump is smaller than the 8.2% boost in August year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. Average mortgage size rose 3.4% to $583,419 in September from a year earlier. In August 2015, average mortgage size climbed 8.3% 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. Attached unit closings gained from 31.8% of all closings in September 2014 to 41.2% of closings in September 2015. Conversely, the share belonging to single-family homes slid to 58.8% of closings from 68.2% of closings.
For all new homes sold, the average unit size increased 5.3% year-over-year to 2,770 square feet in September 2015. In August, the average size of new homes sold went from 2,676 square feet a year earlier to 2,411 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 12.3% of closings, below 13.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.6% in September from 6.5% a year earlier and REO closings moved from 6.7% of existing home closings in September 2014 to 7.7% in September 2015.