In the Los Angeles, CA market in April, new home closings grew year-over-year, but signs of market leveling were showing as the percentage surge was less than March 2016. New home closings saw a 12.7% climb from a year earlier to 568. This came on the heels of a 14.9% boost year-over-year in March.
A total of 7,019 new homes were sold during the 12 months that ended in April, up from 6,955 for the year that ended in March.
Out of all housing closings, new home closings accounted for 5.7%. This is an increase on a percentage basis, as new home closings were 4.5% of total closings a year ago. Following a period of little movement in March from a year earlier, closings of new and existing homes slid year-over-year in April.
Pricing and Mortgage Trends
In April, the average value of new homes saw a 6.4% gain year-over-year as it grew to $915,533 per unit. This surge is better than the 3.0% hike in March year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In April 2016, the average mortgage size was $623,123, up 8.2% from a year earlier. Average mortgage size rose 10.4% in March 2016 from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. Attached unit closings climbed from 32.1% of all closings in April 2015 to 40.5% of closings in April 2016. At the same time, the share belonging to single-family homes declined to 59.5% of closings from 67.9% of closings.
There was a 12.2% lift year-over-year in the average unit size of newly sold homes to 2,629 square feet in April 2016. An increase was also seen in March 2016 when the average size of new homes sold rose 6.1% to 2,488 square feet. The average size of newly sold homes moved from 2,346 square feet in March 2015 to 2,488 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 10.4% of existing home closings, down from 12.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.1% in April from 6.0% a year earlier while REO closings as a percentage of existing home closings stayed level at 6.4%.