New home closings dropped year-over-year in July in the Salem, OR market, but the decline was less than the year-over-year decline in June. New home closings moved from 34 a year earlier to 12 after the figure moved from 29 in June 2015 to 9 in June 2016.
A total of 243 new homes were sold during the 12 months that ended in July, down from 265 for the year that ended in June.
New home closings were 4.5% of total closings a year earlier, and this percentage saw a drop as new home closings this year made up 12 of the 634 total closings. For new and existing homes, closings slid in July after also declining in June year-over-year.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $308,618 from $267,654 a year ago. This followed a 7.6% bump in June year-over-year.
From the year-ago figure of $229,224, the average mortgage size on new homes moved up to $268,530. Average mortgage size on new homes went from $202,255 in June 2015 to $278,991 in June 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in July 2016.
The average unit size of newly sold homes rose from 1,818 square feet a year earlier to 2,028 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 18.5% of existing closings, lower than 22.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 10.6% in July from 11.7% a year earlier while REO closings as a percentage of existing home closings dropped to 7.9% from 10.5% a year earlier.