New home closings in the Lansing, MI market fell year-over-year in January, and the decline was by a larger percentage than the December 2015. New home closings moved from 13 a year earlier to 2 after the figure moved from 8 in December 2014 to 3 in December 2015.

A total of 96 new homes were sold during the 12 months that ended in January, down from 107 for the year that ended in December.

New home closings were 2 out of the 384 total closings, down on a percentage basis from 13 of 451 a year earlier. Following a period of little movement in December from a year earlier, closings of new and existing homes sank year-over-year in January.

Pricing and Mortgage Trends

The average price for newly sold homes moved north to $347,200 from $278,390 a year ago. This followed a 15.1% surge in December year-over-year.

The average mortgage size on new homes was $269,560, up from $210,380. Average mortgage size on new homes went from $231,969 in December 2014 to $260,936 in December 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 fell from 2,676 square feet a year earlier to 2,332 square feet.

Foreclosures and real estate owned (REO) closings declined in January from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 36.6% of existing closings, lower than 51.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 17.8% in January from 31.7% a year earlier and REO closings moved from 19.6% of existing home closings in January 2015 to 18.8% in January 2016.

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