Closings of new homes declined year-over-year in February in the Lansing, MI market, but the decline was less than the year-over-year decline in January. New home closings moved from 2 a year earlier to 1 after the figure moved from 13 in January 2015 to 2 in January 2016.
A total of 95 new homes were sold during the 12 months that ended in February, down from 96 for the year that ended in January.
New home closings were 1 out of the 657 total closings, a move on a percentage basis from 2 of 444 a year earlier. After dropping in January from a year earlier, closings of new and existing homes rose year-over-year in February.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $227,000 from $173,084 a year ago. This was on the heels of a 24.7% rise in January year-over-year.
Average mortgage size on new homes fell from $274,726 to $204,300. Average mortgage size on new homes went from $210,380 in January 2015 to $269,560 in January 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 increase in February from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, accounted for 60.2% of existing home closings, up from 43.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 8.7% in February from 22.2% a year earlier while REO closings as a percentage of existing home closings jumped to 51.5% from 21.3%.