In the Muskegon, MI market, new home closings dropped year-over-year in May, and the decline was by a larger percentage than the April 2016. New home closings moved from 7 a year earlier to 1 after the figure moved from 5 in April 2015 to 1 in April 2016.
On a percentage basis, new home closings as a part of total closings decreased to 0.6% from 3.4% a year earlier. Following a year-over-year increase in April, closings of new and existing homes fell year-over-year in May.
Pricing and Mortgage Trends
The average new home price was $200,000, down from $217,664 a year earlier. This came after a 71.9% bump in April year-over-year.
There was a decline in average mortgage size on new homes, going from $187,128 last year to $88,000 in May 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 fell in May from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 26.5% of closings, below 37.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 13.9% in May from 19.0% a year earlier while REO closings as a percentage of existing home closings fell to 12.7% from 18.5% a year earlier.