In August, there was a decline year-over-year in new home closings in the Baton Rouge, LA market, and there were suggestions of worsening market conditions as the percentage decline was steeper than July 2015. New home closings saw a 79.1% fall from a year earlier to 18. This came on the heels of a 73.1% fall year-over-year in July.
A total of 476 new homes were sold during the 12 months that ended in August, down from 544 for the year that ended in July.
As a percentage of overall housing closings, new home closings represented 2.4%. This is a fall 8.3% of closings a year earlier. Closings of new and existing homes fell year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.2% rise year-over-year in August to $247,606 per unit. This lift is smaller than the 12.8% gain in July year-over-year.
There was a hike year-over-year in the average mortgage size on new homes along with new home prices. In August 2015, there was a 14.7% bump in the average mortgage size, reaching $244,263. In July 2015, average mortgage size on newly sold homes saw a 15.9% lift 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. Single-family home closings gained from 93.0% of new closings in August 2014 to 94.4% of closings in August 2015. Meanwhile, attached units as a percentage of all new home closings declined to 5.6% of closings from 7.0% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 18.2% of existing closings, lower than 20.3% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.0% in August from 10.3% a year earlier and REO closings moved from 10.0% of existing home closings in August 2014 to 10.2% in August 2015.