Closings of new homes dropped year-over-year in August in the Salem, OR market, but the decline was less than the year-over-year decline in July. New home closings moved from 31 a year earlier to 10 after the figure moved from 48 in July 2014 to 8 in July 2015.

A total of 261 new homes were sold during the 12 months that ended in August, down from 282 for the year that ended in July.

New home closings represented 10 out of the 625 total closings, which is a smaller percentage than the 31 of 527 total closings a year earlier. Closings of new and existing homes jumped year-over-year in August after also rising in July year-over-year.

Pricing and Mortgage Trends

The average price of new homes rose to $270,721 from last year's $247,434. This came after a 1.0% hike in July year-over-year.

Average mortgage size on new homes increased to $269,240 from $206,781 last year. Average mortgage size on new homes went from $219,492 in July 2014 to $228,277 in July 2015.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes rose from 1,940 square feet a year earlier to 2,130 square feet.

Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 20.3% of existing closings, lower than 24.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 11.1% in August from 14.5% a year earlier and REO closings moved from 9.9% of existing home closings in August 2014 to 9.3% in August 2015.

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