In the Baton Rouge, LA market in June, new home closings sank year-over-year, and the market seemed to be worsening in light of the percentage fall steeper than May 2016. New home closings saw a drop of 85.1% from the year earlier to 20. This came on the heels of a 39.4% drop year-over-year in May.
A total of 655 new homes were sold during the 12 months that ended in June, down from 769 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 2.1%. This is a decline 11.6% of closings a year earlier. Following a year-over-year rise in May, closings of new and existing homes sank year-over-year in June.
Pricing and Mortgage Trends
In June, the average price for new home closings was $238,648, a 5.9% fall from last year. This decline compares to a 15.1% bump in May year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In June 2016, average mortgage size declined 5.1% from a year earlier to $216,701. In May 2016, average mortgage size on newly sold homes saw a 12.7% gain 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. Attached unit closings climbed from 0.7% of all closings in June 2015 to 5.0% of closings in June 2016. Conversely, the share belonging to single-family homes fell to 95.0% of closings from 99.3% of closings.
There was a 3.3% drop year-over-year in the average unit size of newly sold homes to 1,885 square feet in June 2016. The average size of newly sold homes moved from 2,303 square feet in May 2015 to 1,503 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 13.3% of existing closings, lower than 16.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.6% in June from 7.4% a year earlier while REO closings as a percentage of existing home closings slid to 7.6% from 8.7% a year earlier.