Closings of new homes dropped year-over-year in May in the Medford, OR market, and the decline was by a larger percentage than the April 2016. New home closings moved from 16 a year earlier to 1 after the figure moved from 15 in April 2015 to 1 in April 2016.
A total of 96 new homes were sold during the 12 months that ended in May, down from 111 for the year that ended in April.
New home closings were 1 out of the 363 total closings, down on a percentage basis from 16 of 395 a year earlier. Closings of new and existing homes slid year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average new home value went from $288,601 last year to $386,000. This came after a 44.3% decline in April from a year earlier.
The average mortgage size on new homes was $308,800, up from $216,490. Average mortgage size on new homes went from $286,336 in April 2015 to $172,565 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 16.0% of existing home closings, above 14.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 6.9% in May from 4.5% a year earlier while REO closings as a percentage of existing home closings slid to 9.1% from 10.3% a year earlier.