In the Salem, OR market in December, new home closings dropped year-over-year, and the decline was by a larger percentage than the November 2015. New home closings moved from 36 a year earlier to 8 after the figure moved from 17 in November 2014 to 7 in November 2015.
A total of 213 new homes were sold during the 12 months that ended in December, down from 241 for the year that ended in November.
Last year, 36 of 532 total closings were new homes, and this percentage saw a decline as new home closings this year made up 8 of the 616 total closings. For new and existing homes, closings gained year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
The average new home price was $356,225, up from $247,098 a year earlier. This was on the heels of a 32.8% hike in November year-over-year.
Average mortgage size on new homes went from $226,527 a year earlier to $296,963. Average mortgage size on new homes went from $195,507 in November 2014 to $284,218 in November 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in December 2015.
The average unit size of newly sold homes rose from 1,785 square feet a year earlier to 2,821 square feet.
Foreclosures and real estate owned (REO) closings continued to increase in December from a year earlier and remained a burden on the market. Foreclosures and REO closings, taken together, accounted for 26.8% of existing home closings, higher than 26.6% a year earlier. The percentage of existing home closings involving foreclosures fell to 13.2% in December from 15.3% a year earlier while REO closings as a percentage of existing home closings climbed to 13.7% from 11.3%.