In the Holland, MI market in March, closings of new homes dropped year-over-year, but the decline was less than the year-over-year decline in February. New home closings moved from 22 a year earlier to 11 after the figure moved from 23 in February 2015 to 6 in February 2016.
A total of 249 new homes were sold during the 12 months that ended in March, down from 260 for the year that ended in February.
On a percentage basis, new home closings as a part of total closings decreased to 2.7% from 6.3% a year earlier. For new and existing homes, closings increased year-over-year in March after also increasing in February year-over-year.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $306,819 from $205,233 a year ago. This was on the heels of a 29.4% bump in February year-over-year.
Average mortgage size on new homes increased to $235,992 from $172,012 last year. Average mortgage size on new homes went from $230,711 in February 2015 to $210,178 in February 2016.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
Foreclosures and real estate owned (REO) closings continued to increase in March from a year earlier and remained a drag on the market. Together, foreclosures plus REO closings accounted for 30.0% of existing home closings, up from 17.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.8% in March from 7.0% a year earlier while REO closings as a percentage of existing home closings grew to 26.2% from 10.1%.