NEW-HOME CLOSINGS DROP SHARPLY IN SEPTEMBER, BIA REPORTS

Note to editors:  A table breaking down closings, average price, median prices, average square feet, and average price per square foot for Los Angeles and Ventura counties and by geographic areas within L.A. County can be found here.

SANTA CLARITA – The number of new homes that closed escrow in September dropped sharply from the previous month and September 2010 in both Los Angeles and Ventura counties, the local chapter of the Building Industry Association of Southern California reported today.

A total of 221 new homeowners took the keys to their new homes and condos during the month in L.A. County, according to sales totals compiled for the BIA by Hanley-Wood Market Intelligence. Costa Mesa-based HWMI tracks closings in new-home communities of 10 units or more.

September’s total was down from 286 the previous month and 341 a year ago, when state tax credits for purchasing a new home were still in effect and is the lowest monthly total since January, when 209 closings took place.

The most sales during the month took place in West Los Angeles (82), followed by the South Bay and San Gabriel Valley.

However, the countywide median price increased by 6 percent from the previous month to $381,900. That figure was down 16 percent from a year ago. And the average price per square foot in L.A. County rose slightly to $291 – almost exactly where it was in January.

Ventura County reported just 17 closings in September, and both median price and price per square foot fell month over month and year over year.

Holly Schroeder, CEO of the Los Angeles/Ventura Chapter, said the drop in closings is another sign of how shaky the nation’s economic recovery is and urged local governments throughout the region to work with the building community to make as many projects as possible financially feasible.

“The ongoing weakness in new-home construction is a major reason why the regional and state economies have not shown the kind of strong growth we typically see after a recession,” Schroeder said.

“Homebuilding is a big part of our economy and getting the industry back on its feet would go a long ways toward rebuilding our economy, reducing unemployment and generating tax revenues for state and local governments up and down the state.”

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BIASC is a non-profit trade association representing some 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. The Chapter, one of four that make up BIASC, serves homebuilders in Los Angeles, Ventura and southeastern Kern counties. Learn more at www.bialav.org.

Hanley Wood Market Intelligence (HWMI) is the housing industry’s leading provider of rich data and analytical services on residential real estate development and new-home construction and a business unit of Hanley Wood, LLC, the premier media company serving housing and construction. More information is available on the company’s website, www.hanleywood.com/hwmi, or by calling 1-800-639-3777.

HWMI tracks home closing information by builder on a monthly basis for the state of California and across the country. HWMI closings represent completed transactions during the period indicated. Median and average prices are based upon the final closing price of the transaction as recorded with the associated municipality. Through its data platform, Housing IntelligencePro, HWMI provides the most comprehensive housing data resource available.