The Los Angeles, CA market saw a drop in new home closings year-over-year in November, but the market seemed to be signaling improvement with a percentage fall less steep than in October 2015. There was a 15.3% decline in new home closings from a year earlier. This came after a 19.0% drop year-over-year in October.
A total of 6,312 new homes were sold during the 12 months that ended in November, down from 6,396 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 6.0% of overall housing closings. A year earlier, new home closings represented 6.5% of total closings. After rising year-over-year in October, closings of new and existing homes declined year-over-year in November.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 11.6% year-over-year in November to $934,730 per unit. This lift is an improvement over the 11.5% gain in October year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In November 2015, the average mortgage size on newly sold homes saw a 5.3% bump from a year earlier. Average mortgage size rose 8.8% in October 2015 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 34.4% of all closings in November 2014 to 40.1% of closings in November 2015. At the same time, the share belonging to single-family homes declined to 59.9% of closings from 65.6% of closings.
For all new homes sold, the average unit size rose 5.8% year-over-year to 2,683 square feet in November 2015. In October, the average size of new homes sold went from 2,501 square feet a year earlier to 2,310 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 11.5% of existing closings, lower than 13.6% a year earlier. The percentage of existing home closings involving foreclosures went from 6.5% in November 2014 to 5.7% in November 2015 and REO closings as a percentage of existing home closings dropped to 5.8% from 7.1% a year earlier.