In April, there was a decline year-over-year in new home closings in the Grand Rapids, MI market, but the decline was less than the year-over-year decline in March. New home closings moved from 37 a year earlier to 8 after the figure moved from 43 in March 2015 to 9 in March 2016.
A total of 306 new homes were sold during the 12 months that ended in April, down from 335 for the year that ended in March.
New home closings represented 8 out of the 981 total closings, which is a smaller percentage than the 37 of 1,216 total closings a year earlier. Following a year-over-year rise in March, closings of new and existing homes dropped year-over-year in April.
Pricing and Mortgage Trends
The average value of newly sold homes in April 2016 was $253,180, down from last year's $269,435. This followed a 3.2% decline in March from a year earlier.
The average mortgage size moved to $208,946, down from last year's $219,332. Average mortgage size on new homes went from $199,196 in March 2015 to $206,454 in March 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 fall from a year earlier in April, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 14.1% of existing home closings, down from 19.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.4% in April from 7.6% a year earlier while REO closings as a percentage of existing home closings fell to 9.7% from 12.0% a year earlier.