In the Kalamazoo, MI market in September, new home closings gained year-over-year,. Closings stood at 16 in September after being 14 a year earlier and remaining unchanged at 14 in August from a year earlier.
A total of 138 new homes were sold during the 12 months that ended in September, up from 136 for the year that ended in August.
New home closings were 16 out of the 682 total closings, a move on a percentage basis from 14 of 550 a year earlier. Following a decline in August year-over-year, closings of new and existing homes increased year-over-year in September.
Pricing and Mortgage Trends
The average value of newly sold homes in September 2015 was $212,561, down from last year's $237,888. This followed a 43.6% drop in August from a year earlier.
From the year-ago figure of $212,061, the average mortgage size on new homes moved up to $218,798. Average mortgage size on new homes went from $287,167 in August 2014 to $195,406 in August 2015.
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 increase in September from a year earlier and remained a drag on the market. Combined, foreclosures plus REO closings represented 28.5% of existing home closings, above 22.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 7.2% in September from 11.8% a year earlier while REO closings as a percentage of existing home closings grew to 21.3% from 10.8%.