Closings of new homes dropped year-over-year in July in the Detroit, MI market, and the percentage fall, which was steeper than June 2015, gave suggestions of weakening market conditions. New home closings saw a decline of 60.8% from the year earlier to 85. This was after the housing market saw a 56.8% fall year-over-year in June.
A total of 1,429 new homes were sold during the 12 months that ended in July, down from 1,561 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 1.2% of overall housing closings. A year ago, new home closings made up 1.4%. Following a year-over-year increase in June, closings of new and existing homes sank year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes slid 15.2% year-over-year in July to $268,755 per unit. This decline is larger than the 7.9% drop in June from a year earlier.
For newly sold homes, the average mortgage size saw a drop year-over-year in contrast to new home prices. It fell 9.5% in July from a year earlier, reaching $247,020. In June 2015, average mortgage size on newly sold homes saw a 15.3% fall from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have fallen. The share of new home closings belonging to attached units climbed from 44.7% of closings in July 2014 to 56.5% of closings in July 2015. Conversely, the share belonging to single-family homes slid to 43.5% of closings from 55.3% of closings.
The average unit size of newly sold homes dropped 38.3% year-over-year to 1,482 square feet in July 2015. A decrease in both the average size and price of newly sold homes was also seen in June 2015 when the average size grew 41.9% to 1,499 square feet. The average size of newly sold homes moved from 2,579 square feet in June 2014 to 1,499 square feet in June 2015.
Foreclosures and real estate owned (REO) closings declined in July from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, made up 25.7% of existing closings, lower than 68.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 12.0% in July from 59.9% a year earlier while REO closings as a percentage of existing home closings increased to 13.7% from 8.5%.