In September, the Salem, OR market saw a fall year-over-year in new home closings, and the decline was by a larger percentage than the August 2015. New home closings moved from 36 a year earlier to 4 after the figure moved from 31 in August 2014 to 10 in August 2015.
A total of 241 new homes were sold during the 12 months that ended in September, down from 273 for the year that ended in August.
New home closings were 6.8% of total closings a year earlier, and this percentage saw a drop as new home closings this year made up 4 of the 734 total closings. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $279,500 from $263,978 a year ago. This followed a 9.4% bump in August year-over-year.
The average mortgage size on new homes was $268,396, up from $215,333. Average mortgage size on new homes went from $206,781 in August 2014 to $269,240 in August 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 2,193 square feet a year earlier to 2,035 square feet.
Foreclosures and real estate owned (REO) closings increased in September from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 23.6% of existing home closings, up from 22.6% a year earlier. The percentage of existing home closings involving foreclosures went from 11.6% in September 2014 to 12.3% in September 2015 and REO closings moved from 11.0% of existing home closings in September 2014 to 11.2% in September 2015.