In July, there was a fall year-over-year in new home closings in the Salem, OR market, and the decline was by a larger percentage than the June 2015. New home closings moved from 48 a year earlier to 8 after the figure moved from 30 in June 2014 to 7 in June 2015.
A total of 276 new homes were sold during the 12 months that ended in July, down from 316 for the year that ended in June.
Last year, 48 of 555 total closings were new homes, and this percentage saw a decline as new home closings this year made up 8 of the 730 total closings. Closings of new and existing homes increased year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $262,667 from $259,961 a year ago. This was on the heels of a 25.8% bump in June year-over-year.
Average mortgage size on new homes increased to $228,277 from $219,492 last year. Average mortgage size on new homes went from $214,745 in June 2014 to $171,201 in June 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 July 2015.
The average unit size of newly sold homes rose from 1,900 square feet a year earlier to 2,000 square feet.
Foreclosures and real estate owned (REO) closings increased in July from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 22.0% of existing home closings, above 21.7% a year earlier. The percentage of existing home closings involving foreclosures slid to 11.9% in July from 13.2% a year earlier while REO closings as a percentage of existing home closings grew to 10.1% from 8.5%.