The Los Angeles, CA market saw a drop in new home closings year-over-year in July, and the percentage fall, which was steeper than June 2015, gave suggestions of weakening market conditions. New home closings saw a 11.9% fall from a year earlier to 482. In comparison, new home closings in the same month last year saw a 2.1% drop year-over-year in June.
A total of 6,319 new homes were sold during the 12 months that ended in July, down from 6,384 for the year that ended in June.
New home closings represented 3.8% of overall housing closings. This is down from the 4.9% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes also jumped year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes slid 5.2% year-over-year in July to $819,074 per unit. This decline compares to a 7.9% hike in June year-over-year.
For newly sold homes, average mortgage size moved from $553,335 in July 2014 to $554,630 in July 2015. In June 2015, average mortgage size on newly sold homes saw a 10.1% bump year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units climbed from 32.2% of closings in July 2014 to 41.9% of closings in July 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 58.1% of closings from 67.8% of closings.
For all new homes sold, the average unit size dropped 5.3% year-over-year to 2,518 square feet in July 2015. The average size of newly sold homes moved from 2,415 square feet in June 2014 to 2,431 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 10.8% of existing home closings, below 13.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.8% in July from 6.2% a year earlier while REO closings as a percentage of existing home closings fell to 6.0% from 7.2% a year earlier.