Closings of new homes sank year-over-year in April in the Salem, OR market, and the decline was by a larger percentage than the March 2016. New home closings moved from 37 a year earlier to 10 after the figure moved from 38 in March 2015 to 22 in March 2016.

A total of 294 new homes were sold during the 12 months that ended in April, down from 321 for the year that ended in March.

New home closings were 5.7% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 10 of the 584 total closings. Following a year-over-year rise in March, closings of new and existing homes dropped year-over-year in April.

Pricing and Mortgage Trends

The average new home value went from $262,112 last year to $303,550. This followed a 15.6% gain in March year-over-year.

Average mortgage size on new homes rose from $226,336 to $244,197. Average mortgage size gained 14.2% in March 2016 from a year earlier.

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 1,890 square feet a year earlier to 2,126 square feet.

Foreclosures and real estate owned (REO) closings continued to rise in April from a year earlier and remained a burden on the market. Combined, foreclosures plus REO closings represented 25.6% of existing home closings, above 19.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 13.1% in April from 7.5% a year earlier and REO closings moved from 11.6% of existing home closings in April 2015 to 12.5% in April 2016.

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