In the Salem, OR market, closings of new homes sank year-over-year in November, but the decline was less than the year-over-year decline in October. New home closings moved from 17 a year earlier to 7 after the figure moved from 37 in October 2014 to 9 in October 2015.
A total of 241 new homes were sold during the 12 months that ended in November, down from 251 for the year that ended in October.
New home closings were 3.9% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 7 of the 524 total closings. For new and existing homes, closings rose year-over-year in November after also increasing in October year-over-year.
Pricing and Mortgage Trends
The average new home price was $320,389, up from $241,323 a year earlier. This was on the heels of a move from $261,414 per unit to $263,989 from October 2014 to October 2015.
Average mortgage size on new homes increased to $284,218 from $195,507 last year. Average mortgage size on new homes went from $225,694 in October 2014 to $257,669 in October 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in November 2015.
The average unit size of newly sold homes fell from 1,821 square feet a year earlier to 1,738 square feet.
Foreclosures and real estate owned (REO) closings declined in November from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 25.1% of closings, below 28.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 15.5% in November from 19.3% a year earlier and REO closings moved from 8.8% of existing home closings in November 2014 to 9.7% in November 2015.