In the Grand Rapids, MI market in May, closings of new homes dropped year-over-year, and the decline was by a larger percentage than the April 2016. New home closings moved from 42 a year earlier to 7 after the figure moved from 37 in April 2015 to 10 in April 2016.
A total of 264 new homes were sold during the 12 months that ended in May, down from 299 for the year that ended in April.
Last year, 42 of 1,360 total closings were new homes, and this percentage saw a decline as new home closings this year made up 7 of the 1,220 total closings. For new and existing homes, closings dropped in May after also declining in April year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in May 2016 was $224,357, down from last year's $286,376. This followed a 14.1% drop in April from a year earlier.
Average mortgage size on newly sold homes saw a decline year-over-year from $249,298 to $208,489. Average mortgage size on new homes went from $219,332 in April 2015 to $187,828 in April 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 fell from 1,678 square feet a year earlier to 1,445 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 12.2% of closings, below 16.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.3% in May from 6.9% a year earlier while REO closings as a percentage of existing home closings fell to 7.9% from 9.1% a year earlier.