New home closings sank year-over-year in May in the New Orleans, LA market, but the decline was less than the year-over-year decline in April. New home closings moved from 35 a year earlier to 19 after the figure moved from 41 in April 2015 to 13 in April 2016.
A total of 252 new homes were sold during the 12 months that ended in May, down from 268 for the year that ended in April.
Of the total number of closings, new home closings made up 1.3%. New home closings were 2.1% of overall closings last year. Closings of new and existing homes declined year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
In May, there was a 16.9% decline year-over-year in the average per-unit price of newly sold homes, settling at $332,292. This drop is a drop off from the 17.2% decline in April from a year earlier.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. The average mortgage size saw a 10.7% gain year-over-year to $293,532 in May. Average mortgage size on new homes went from $290,508 in April 2015 to $221,849 in April 2016.
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. The share of new home closings belonging to attached units rose from 22.9% of closings in May 2015 to 26.3% of closings in May 2016. At the same time, the share belonging to single-family homes slid to 73.7% of closings from 77.1% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 19.5% of existing home closings, down from 23.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 8.1% in May from 11.8% a year earlier while REO closings as a percentage of existing home closings stayed level at 11.3%.