In July, there was a drop year-over-year in new home closings in the Los Angeles, CA market, but there were signals of market improvement with a percentage decline less steep than in June 2016. New home closings saw a 5.3% fall from a year earlier to 501. This came on the heels of a 8.7% drop year-over-year in June.
A total of 7,070 new homes were sold during the 12 months that ended in July, down from 7,098 for the year that ended in June.
New home closings accounted for 4.6% of overall housing closings. They made up 4.2% of closings a year earlier. For new and existing homes, closings dropped in July after also declining in June year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 13.5% lift year-over-year to $909,913 per unit in July. This surge follows a move from $871,508 per unit to $868,942 from June 2015 to June 2016.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. In July 2016, average mortgage size rose 10.2% from a year earlier to $606,096. In June 2016, average mortgage size on newly sold homes saw a 5.2% surge year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes increased from 56.0% in July 2015 to 60.7% of closings in July 2016. At the same time, the share of new home closings belonging to attached units fell to 39.3% of closings from 44.0% of closings.
For all new homes sold, the average unit size slid 15.3% year-over-year to 2,220 square feet in July 2016. The average size of newly sold homes moved from 2,467 square feet in June 2015 to 2,164 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 8.9% of existing home closings, below 10.8% a year earlier. The percentage of existing home closings involving foreclosures went from 4.8% in July 2015 to 4.2% in July 2016 and REO closings as a percentage of existing home closings sank to 4.8% from 6.1% a year earlier.