Closings of new homes fell year-over-year in August in the Grand Rapids, MI market, and the decline was by a larger percentage than the July 2015. New home closings moved from 45 a year earlier to 6 after the figure moved from 35 in July 2014 to 10 in July 2015.

A total of 123 new homes were sold during the 12 months that ended in August, down from 162 for the year that ended in July.

On a percentage basis, new home closings as a part of total closings decreased to 0.5% from 3.8% a year earlier. Following a year-over-year rise in July, closings of new and existing homes sank year-over-year in August.

Pricing and Mortgage Trends

The average new home price was $216,650, down from $242,223 a year earlier. This came after a 19.6% fall in July from a year earlier.

Average mortgage size on new homes moved from $204,922 to $205,235. Average mortgage size on new homes went from $206,655 in July 2014 to $147,749 in July 2015.

Other Market Trends

There was no change in the composition of the new home market with regard to the types of properties sold in August 2015.

Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.5% of closings, below 17.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.0% in August from 7.3% a year earlier while REO closings as a percentage of existing home closings declined to 6.5% from 10.3% a year earlier.

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