Closings of new homes declined year-over-year in June in the Kalamazoo, MI market, but the decline was less than the year-over-year decline in May. New home closings moved from 23 a year earlier to 10 after the figure moved from 23 in May 2015 to 8 in May 2016.
A total of 150 new homes were sold during the 12 months that ended in June, down from 163 for the year that ended in May.
Last year, 23 of 647 total closings were new homes, and this percentage saw a decline as new home closings this year made up 10 of the 601 total closings. Following a year-over-year rise in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average value of newly sold homes in June 2016 was $277,742, down from last year's $312,413. This followed a 22.9% bump in May year-over-year.
Average mortgage size on new homes increased to $265,927 from $244,696 last year. Average mortgage size on new homes went from $197,957 in May 2015 to $222,492 in May 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 drop from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 14.2% of existing home closings, below 20.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 5.4% in June from 8.7% a year earlier while REO closings as a percentage of existing home closings dropped to 8.8% from 11.4% a year earlier.