Los Angeles, CA - Latest New Home Sales Numbers Give Hints Market Fall is Deepening
Posted on: Feb 06, 2012 09:29:41 AM
Sales of new homes in the Los Angeles, CA market fell year-over-year in November, and there were signals of worsening market conditions as the percentage drop was harsher than October 2011. New home sales saw a 27.0% drop from a year earlier to 427. This came on the heels of a 9.5% decline year-over-year in October.
A total of 5,201 new homes were sold during the 12 months that ended in November, down from 5,359 for the year that ended in October.
Moving south from a year earlier, new home sales in November 2011 made up 4.1% of overall housing sales, while the year-ago figure was 5.6%. After dropping in October from a year earlier, sales of new and existing homes rose year-over-year in November.
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Pricing and Mortgage Trends
In November, the average price of newly sold homes slipped year-over-year to $504,711 per unit, marking an 8.1% decline from the year-earlier figure. This decline a drop off from the 10.1% fall in October from a year earlier.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. It declined 6.2% in November from a year earlier, reaching $388,304. Average mortgage size fell 8.8% in October 2011 from a year earlier. On average, the percentage of new home sale price being financed saw a 1.6 percentage point rise from a year earlier. It went from 70.2% in October 2010 to 71.1% in October 2011.
Los Angeles, CA - Latest New Home Sales Numbers Give Hints Market Fall is Deepening
Posted on: Feb 06, 2012 09:29:41 AM
Sales of new homes in the Los Angeles, CA market fell year-over-year in November, and there were signals of worsening market conditions as the percentage drop was harsher than October 2011. New home sales saw a 27.0% drop from a year earlier to 427. This came on the heels of a 9.5% decline year-over-year in October.
A total of 5,201 new homes were sold during the 12 months that ended in November, down from 5,359 for the year that ended in October.
Moving south from a year earlier, new home sales in November 2011 made up 4.1% of overall housing sales, while the year-ago figure was 5.6%. After dropping in October from a year earlier, sales of new and existing homes rose year-over-year in November.
Pricing and Mortgage Trends
In November, the average price of newly sold homes slipped year-over-year to $504,711 per unit, marking an 8.1% decline from the year-earlier figure. This decline a drop off from the 10.1% fall in October from a year earlier.
Average mortgage size on new homes saw a decline year-over-year in contrast to prices of new homes. It declined 6.2% in November from a year earlier, reaching $388,304. Average mortgage size fell 8.8% in October 2011 from a year earlier. On average, the percentage of new home sale price being financed saw a 1.6 percentage point rise from a year earlier. It went from 70.2% in October 2010 to 71.1% in October 2011.
Other Market Trends
Single-family homes accounted for a greater percentage of new home sales than last year. The share of new home sales belonging to single-family homes jumped from 49.1% in November 2010 to 57.4% of sales in November 2011. At the same time, the share of new home sales belonging to attached units sank to 42.6% of sales from 50.9% of sales.
There was a 19.6% drop year-over-year in the average unit size of newly sold homes to 1,421 square feet in November 2011. A decrease in both the average size and price of newly sold homes was also seen in October 2011 when the average size increased 9.0% to 1,632 square feet.
Foreclosures and real estate owned (REO) sales stayed a drag on the market. Together, foreclosures plus REO sales made up 42.0% of existing home sales. They represented 50.9% in November 2010. The percentage of existing home sales involving foreclosures went from 23.6% in November 2010 to 23.0% in November 2011 and REO sales as a percentage of existing home sales slipped to 19.1% from 27.3% a year earlier.
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Source: Housing Intelligence