In August, the Holland, MI market saw a fall year-over-year in new home closings, but the market seemed to be suggesting improvement with a percentage decline less steep than in July 2015. Closings dropped 3.3% from a year earlier to 29. This came on the heels of a 15.2% decline year-over-year in July.
A total of 302 new homes were sold during the 12 months that ended in August, down from 303 for the year that ended in July.
Out of all housing closings, new home closings represented 5.2%. A year earlier, new home closings made up 5.9% of total closings. For new and existing homes, closings climbed year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes went from $230,420 in August 2014 to $231,586 in August 2015. This came after a 1.3% drop in July from a year earlier.
The average mortgage size on newly sold homes moved south year-over-year in contrast to new home prices. In August 2015, there was a 16.4% fall in the average mortgage size on new homes to $195,245. In July 2015, average mortgage size fell 13.6% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 46.7% of closings in August 2014 to 58.6% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 41.4% of closings from 53.3% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 7.0% of existing home closings, down from 10.9% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.7% in August from 5.3% a year earlier while REO closings as a percentage of existing home closings slid to 4.4% from 5.7% a year earlier.