Closings of new homes fell year-over-year in May in the Kalamazoo, MI market, and the decline was by a larger percentage than the April 2016. New home closings moved from 23 a year earlier to 7 after the figure moved from 17 in April 2015 to 9 in April 2016.
A total of 164 new homes were sold during the 12 months that ended in May, down from 180 for the year that ended in April.
New home closings were 4.0% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 7 of the 552 total closings. After remaining steady in April from a year earlier, closings of new and existing homes dropped year-over-year in May.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $254,956 from $207,452 a year ago. This came after a 10.6% decline in April from a year earlier.
Average mortgage size on new homes rose from $197,957 to $222,492. Average mortgage size on new homes went from $224,104 in April 2015 to $193,104 in April 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.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 18.9% of existing closings, lower than 20.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 7.2% in May from 9.8% a year earlier while REO closings as a percentage of existing home closings jumped to 11.7% from 10.4%.