In the Grand Rapids, MI market in September, closings of new homes slid year-over-year, but the decline was less than the year-over-year decline in August. New home closings moved from 23 a year earlier to 7 after the figure moved from 45 in August 2014 to 6 in August 2015.
A total of 108 new homes were sold during the 12 months that ended in September, down from 124 for the year that ended in August.
New home closings were 7 out of the 1,364 total closings, down on a percentage basis from 23 of 1,033 a year earlier. For new and existing homes, closings rose year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
The average new home value went from $194,916 last year to $243,406. This followed a 10.6% drop in August from a year earlier.
Average mortgage size on new homes went from $148,782 a year earlier to $209,157. Average mortgage size on new homes went from $204,922 in August 2014 to $166,427 in August 2015.
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 drop from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 15.6% of existing closings, lower than 17.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.7% in September from 7.9% a year earlier and REO closings moved from 9.7% of existing home closings in September 2014 to 8.9% in September 2015.