In January, there was a drop year-over-year in new home closings in the Grand Rapids, MI market, and the decline was by a larger percentage than the December 2015. New home closings moved from 35 a year earlier to 6 after the figure moved from 33 in December 2014 to 13 in December 2015.

A total of 386 new homes were sold during the 12 months that ended in January, down from 415 for the year that ended in December.

On a percentage basis, new home closings as a part of total closings decreased to 0.7% from 4.5% a year earlier. Following a year-over-year increase in December, closings of new and existing homes also grew year-over-year in January.

Pricing and Mortgage Trends

The average new home value went from $229,307 last year to $250,191. This followed a 24.6% surge in December year-over-year.

Average mortgage size on new homes went from $185,579 a year earlier to $195,109. Average mortgage size on new homes went from $180,980 in December 2014 to $170,076 in December 2015.

Other Market Trends

As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.

The average unit size of newly sold homes fell from 1,426 square feet a year earlier to 1,092 square feet.

Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 21.4% of closings, below 29.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 10.9% in January from 17.6% a year earlier while REO closings as a percentage of existing home closings dropped to 10.5% from 11.6% a year earlier.

Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in the Grand Rapids, MI area.