In June, the Muskegon, MI market saw a drop year-over-year in new home closings, but the decline was less than the year-over-year decline in May. New home closings moved from 5 a year earlier to 1 after the figure moved from 7 in May 2015 to 1 in May 2016.
New home closings were 1 out of the 200 total closings, down on a percentage basis from 5 of 216 a year earlier. Following a year-over-year decline in May, closings of new and existing homes also sank year-over-year in June.
Pricing and Mortgage Trends
The average new home value went from $175,456 last year to $312,000. This followed a 8.1% decline in May from a year earlier.
The average mortgage size on new homes was $312,000, up from $166,039. Average mortgage size on new homes went from $187,128 in May 2015 to $88,000 in May 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.
The average unit size of newly sold homes rose from 1,475 square feet a year earlier to 2,080 square feet.
Foreclosures and real estate owned (REO) closings declined in June from a year earlier, but remained a drag on the market. Together, foreclosures plus REO closings made up 31.2% of existing home closings, down from 35.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 11.1% in June from 19.9% a year earlier while REO closings as a percentage of existing home closings climbed to 20.1% from 15.6%.