The Baton Rouge, LA market saw a drop in new home closings year-over-year in August, and there were suggestions the market may be worsening with a percentage fall steeper than that of July 2015. New home closings saw a fall of 79.1% from the year earlier to 18. This was after the housing market saw a 73.1% drop 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.
New home closings accounted for 2.4% of overall housing closings. This is down from the a year earlier when new home closings accounted for 8.3% of total closings. Closings of new and existing homes slid year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes jumped year-over-year to $247,606 in August, up 1.2% from last year. This boost is smaller than the 12.8% lift in July year-over-year.
Average mortgage size on new homes gained year-over-year along with new home prices. In August 2015, the average mortgage size on newly sold homes saw a 14.7% boost from a year earlier. Average mortgage size gained 15.9% in July 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings increased from 93.0% of new closings in August 2014 to 94.4% of closings in August 2015. At the same time, the share of new home closings belonging to attached units slid to 5.6% of closings from 7.0% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 18.2% of existing home closings, down from 20.3% a year earlier. The percentage of existing home closings involving foreclosures fell 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.