New home closings in the Grand Rapids, MI market declined year-over-year in July, but the decline was less than the year-over-year decline in June. New home closings moved from 35 a year earlier to 10 after the figure moved from 53 in June 2014 to 6 in June 2015.

A total of 161 new homes were sold during the 12 months that ended in July, down from 186 for the year that ended in June.

New home closings were 10 out of the 1,487 total closings, down on a percentage basis from 35 of 1,438 a year earlier. Following a year-over-year increase in June, closings of new and existing homes also climbed year-over-year in July.

Pricing and Mortgage Trends

The average per-unit price of new homes was $192,441, compared with $239,320 last year. This followed a 14.5% decline in June from a year earlier.

Average mortgage size on new homes fell from $206,655 to $147,749. Average mortgage size on new homes went from $214,899 in June 2014 to $199,500 in June 2015.

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 rose from 1,793 square feet a year earlier to 2,118 square feet.

Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.5% of existing home closings, below 16.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.2% in July from 7.7% a year earlier while REO closings as a percentage of existing home closings slid to 7.3% from 8.8% a year earlier.

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