In May, closings of new homes in the Los Angeles, CA market increased year-over-year, and the market seemed to be signaling strengthening with a percentage rise more robust than April 2016. Closings rose 17.3% from a year earlier to 584. This came on the heels of a 12.7% climb year-over-year in April.
A total of 7,113 new homes were sold during the 12 months that ended in May, up from 7,027 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 5.6%. This is an increase on a percentage basis, as new home closings were 4.5% of total closings a year ago. For new and existing homes, closings dropped in May after also declining in April year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $891,654 in May 2015 to $890,343 in May 2016. This came after a 6.4% gain in April year-over-year.
Average mortgage size on new homes jumped year-over-year in contrast to new home prices. Average mortgage size increased 4.8% to $622,662 in May from a year earlier. Average mortgage size increased 8.2% in April 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings grew from 17.9% of all closings in May 2015 to 35.4% of closings in May 2016. At the same time, the share belonging to single-family homes declined to 64.6% of closings from 82.1% of closings.
For all new homes sold, the average unit size slid 4.2% year-over-year to 2,450 square feet in May 2016. The average size of newly sold homes moved from 2,343 square feet in April 2015 to 2,629 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, made up 9.1% of existing closings, lower than 11.5% a year earlier. The percentage of existing home closings involving foreclosures went from 4.8% in May 2015 to 4.0% in May 2016 and REO closings as a percentage of existing home closings sank to 5.1% from 6.6% a year earlier.