Closings of new homes slid year-over-year in February in the Holland, MI market, and the decline was by a larger percentage than the January 2016. New home closings moved from 23 a year earlier to 6 after the figure moved from 16 in January 2015 to 11 in January 2016.
A total of 260 new homes were sold during the 12 months that ended in February, down from 277 for the year that ended in January.
New home closings represented 6 out of the 261 total closings, which is a smaller percentage than the 23 of 260 total closings a year earlier. After a drop in January year-over-year, new and existing home closings stayed level in February.
Pricing and Mortgage Trends
The average price of new homes was $319,041, an increase from $246,624 a year earlier. This came after a 15.4% hike in January year-over-year.
The average mortgage size went down to $210,178 from $230,711 a year earlier. Average mortgage size on new homes went from $197,908 in January 2015 to $223,612 in January 2016.
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 2,581 square feet a year earlier to 1,922 square feet.
Foreclosures and real estate owned (REO) closings increased in February from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 19.6% of existing home closings, up from 14.8% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.1% in February from 6.3% a year earlier while REO closings as a percentage of existing home closings gained to 14.5% from 8.4%.