New home closings in the Grand Rapids, MI market sank year-over-year in April, but the decline was less than the year-over-year decline in March. New home closings moved from 37 a year earlier to 8 after the figure moved from 43 in March 2015 to 9 in March 2016.
A total of 306 new homes were sold during the 12 months that ended in April, down from 335 for the year that ended in March.
New home closings were 8 out of the 981 total closings, down on a percentage basis from 37 of 1,216 a year earlier. Following a year-over-year rise in March, closings of new and existing homes sank year-over-year in April.
Pricing and Mortgage Trends
The average per-unit price of new homes was $253,180, compared with $269,435 last year. This was on the heels of a 3.2% drop in March from a year earlier.
There was a decline in average mortgage size on new homes, going from $219,332 last year to $208,946 in April 2016. Average mortgage size on new homes went from $199,196 in March 2015 to $206,454 in March 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 14.1% of existing closings, lower than 19.7% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.4% in April from 7.6% a year earlier while REO closings as a percentage of existing home closings slid to 9.7% from 12.0% a year earlier.