New home closings in the New Orleans, LA market dropped year-over-year in June, and the decline was by a larger percentage than the May 2016. New home closings moved from 45 a year earlier to 13 after the figure moved from 35 in May 2015 to 19 in May 2016.
A total of 220 new homes were sold during the 12 months that ended in June, down from 252 for the year that ended in May.
New home closings were 13 out of the 1,547 total closings, down on a percentage basis from 45 of 1,670 a year earlier. Following a year-over-year decline in May, closings of new and existing homes also slid year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of new homes was $286,779, compared with $393,672 last year. This came after a 16.9% drop in May from a year earlier.
There was a decline in average mortgage size on new homes, going from $267,433 last year to $224,039 in June 2016. In May 2016, average mortgage size grew 10.7% 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.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 18.0% of existing home closings, down from 23.5% a year earlier. The percentage of existing home closings involving foreclosures sank to 7.6% in June from 10.7% a year earlier while REO closings as a percentage of existing home closings fell to 10.4% from 12.8% a year earlier.