New home closings in the Grand Rapids, MI market declined year-over-year in February, but the decline was less than the year-over-year decline in January. New home closings moved from 32 a year earlier to 10 after the figure moved from 35 in January 2015 to 6 in January 2016.
A total of 364 new homes were sold during the 12 months that ended in February, down from 386 for the year that ended in January.
New home closings represented 10 out of the 807 total closings, which is a smaller percentage than the 32 of 825 total closings a year earlier. After rising year-over-year in January, closings of new and existing homes fell year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes rose to $293,689 from last year's $250,252. This was on the heels of a 9.1% surge in January year-over-year.
From the year-ago figure of $205,235, the average mortgage size on new homes moved up to $236,453. Average mortgage size on new homes went from $185,579 in January 2015 to $195,109 in January 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.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 19.8% of closings, below 25.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 8.2% in February from 10.2% a year earlier while REO closings as a percentage of existing home closings declined to 11.7% from 15.6% a year earlier.