In the Holland, MI market, new home closings sank year-over-year in September, and the market seemed to be worsening in light of the percentage decline steeper than August 2015. New home closings saw a 29.2% decline from a year earlier to 17. This followed a 3.3% decline year-over-year in August.
A total of 296 new homes were sold during the 12 months that ended in September, down from 303 for the year that ended in August.
Out of all housing closings, new home closings represented 3.6%. This is down from the a year earlier when new home closings made up 5.1% of total closings. After new and existing closings jumped in August year-over-year, they stayed level in September.
Pricing and Mortgage Trends
The average value for new homes sold in September 2015 was $241,709, a move from $243,165 a year earlier. This came after a move from $230,420 per unit to $231,586 from August 2014 to August 2015.
For newly sold homes, the average mortgage size saw a fall year-over-year in contrast to new home prices. It fell 18.9% in September from a year earlier to $178,576. In August 2015, average mortgage size slid 16.4% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings climbed from 54.2% of all closings in September 2014 to 64.7% of closings in September 2015. At the same time, the share belonging to single-family homes dropped to 35.3% of closings from 45.8% of closings.
For all new homes sold, the average unit size fell 29.9% year-over-year to 1,040 square feet in September 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 8.5% of existing home closings, down from 12.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.6% in September from 4.7% a year earlier while REO closings as a percentage of existing home closings slid to 5.9% from 7.8% a year earlier.