In May, the Lansing, MI market saw a drop year-over-year in new home closings, but the decline was less than the year-over-year decline in April. New home closings moved from 20 a year earlier to 8 after the figure moved from 17 in April 2015 to 5 in April 2016.
A total of 88 new homes were sold during the 12 months that ended in May, down from 100 for the year that ended in April.
On a percentage basis, new home closings as a part of total closings decreased to 1.1% from 2.7% a year earlier. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $300,925, compared with $305,817 last year. This was on the heels of a 12.8% bump in April year-over-year.
From the year-ago figure of $277,238, the average mortgage size on new homes moved up to $331,910. Average mortgage size on new homes went from $215,549 in April 2015 to $249,100 in April 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.
The average unit size of newly sold homes fell from 3,514 square feet a year earlier to 2,744 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 22.8% of existing home closings, below 26.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 9.1% in May from 12.4% a year earlier and REO closings moved from 14.3% of existing home closings in May 2015 to 13.8% in May 2016.