In the Kalamazoo, MI market in June, closings of new homes declined year-over-year, but the decline was less than the year-over-year decline in May. New home closings moved from 23 a year earlier to 10 after the figure moved from 23 in May 2015 to 8 in May 2016.
A total of 150 new homes were sold during the 12 months that ended in June, down from 163 for the year that ended in May.
On a percentage basis, new home closings as a part of total closings decreased to 1.7% from 3.6% a year earlier. Following a year-over-year increase in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
The average new home price was $277,742, down from $312,413 a year earlier. This came after a 22.9% hike in May year-over-year.
The average mortgage size on new homes was $265,927, up from $244,696. Average mortgage size on new homes went from $197,957 in May 2015 to $222,492 in May 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 drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 14.2% of existing home closings, down from 20.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.4% in June from 8.7% a year earlier while REO closings as a percentage of existing home closings declined to 8.8% from 11.4% a year earlier.