In the Lansing, MI market, new home closings dropped year-over-year in March, but the decline was less than the year-over-year decline in February. New home closings moved from 10 a year earlier to 6 after the figure moved from 2 in February 2015 to 1 in February 2016.
A total of 112 new homes were sold during the 12 months that ended in March, down from 116 for the year that ended in February.
New home closings were 6 out of the 622 total closings, a move on a percentage basis from 10 of 548 a year earlier. Closings of new and existing homes gained year-over-year in March after also rising in February year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose to $335,953 from last year's $219,778. This came after a 31.2% gain in February year-over-year.
Average mortgage size on new homes increased to $300,124 from $234,060 last year. Average mortgage size on new homes went from $274,726 in February 2015 to $204,300 in February 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings continued to rise in March from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, accounted for 46.6% of existing home closings, higher than 38.8% a year earlier. The percentage of existing home closings involving foreclosures sank to 14.3% in March from 19.0% a year earlier while REO closings as a percentage of existing home closings increased to 32.3% from 19.9%.