In the Salem, OR market in February, closings of new homes slid year-over-year, and the decline was by a larger percentage than the January 2016. New home closings moved from 28 a year earlier to 13 after the figure moved from 23 in January 2015 to 16 in January 2016.
A total of 289 new homes were sold during the 12 months that ended in February, down from 304 for the year that ended in January.
New home closings were 6.8% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 13 of the 520 total closings. Closings of new and existing homes increased year-over-year in February after also rising in January year-over-year.
Pricing and Mortgage Trends
The average new home price was $280,277, down from $287,886 a year earlier. This was on the heels of a move from $265,097 per unit to $264,079 from January 2015 to January 2016.
Average mortgage size on new homes moved from $248,571 to $250,734. Average mortgage size dropped 12.3% in January 2016 from a year earlier.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in February 2016.
The average unit size of newly sold homes fell from 2,220 square feet a year earlier to 2,142 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in February from a year earlier and stayed a drag on the market. Foreclosures and REO closings, taken together, made up 29.8% of existing home closings, higher than 26.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 15.6% in February from 12.3% a year earlier and REO closings moved from 14.4% of existing home closings in February 2015 to 14.2% in February 2016.