In July, the Kalamazoo, MI market saw a drop year-over-year in new home closings, but the decline was less than the year-over-year decline in June. New home closings moved from 21 a year earlier to 11 after the figure moved from 23 in June 2015 to 11 in June 2016.
A total of 141 new homes were sold during the 12 months that ended in July, down from 151 for the year that ended in June.
Last year, 21 of 686 total closings were new homes, and this percentage saw a decline as new home closings this year made up 11 of the 555 total closings. Following a period of little movement in June from a year earlier, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
The average new home value went from $224,953 last year to $232,470. This followed a 14.0% fall in June from a year earlier.
There was a decline in average mortgage size on new homes, going from $195,266 last year to $191,069 in July 2016. Average mortgage size on new homes went from $244,696 in June 2015 to $256,046 in June 2016.
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 fall from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 13.1% of existing home closings, below 18.8% a year earlier. The percentage of existing home closings involving foreclosures dropped to 4.4% in July from 9.5% a year earlier and REO closings moved from 9.3% of existing home closings in July 2015 to 8.6% in July 2016.