In the Detroit, MI market, closings of new homes slid year-over-year in March, and the percentage fall, which was steeper than February 2016, gave hints that the market may be worsening. New home closings saw a 53.8% decline from a year earlier to 90. This was after the housing market saw a 51.8% drop year-over-year in February.
A total of 1,786 new homes were sold during the 12 months that ended in March, down from 1,891 for the year that ended in February.
New home closings represented 1.7% of overall housing closings. This is down from the a year earlier when new home closings represented 3.2% of total closings. Following a year-over-year rise in February, closings of new and existing homes sank year-over-year in March.
Pricing and Mortgage Trends
The average price of new homes slid by 4.3% year-over-year to $335,699 per unit in March. This fall compares to a 23.2% boost in February year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In March 2016, the average mortgage size on newly sold homes saw a 11.7% drop from a year earlier. In February 2016, average mortgage size increased 22.9% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 37.9% in March 2015 to 45.6% of closings in March 2016. Conversely, the share of new home closings belonging to attached units sank to 54.4% of closings from 62.1% of closings.
The average unit size of newly sold homes declined 19.1% year-over-year to 2,238 square feet in March 2016. The average size of newly sold homes moved from 2,443 square feet in February 2015 to 3,286 square feet in February 2016.
Foreclosures and real estate owned (REO) closings fell in March from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, accounted for 38.5% of existing closings, lower than 39.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 12.3% in March from 18.2% a year earlier while REO closings as a percentage of existing home closings jumped to 26.2% from 20.9%.