In June, the Salem, OR market saw a decline year-over-year in new home closings, and the decline was by a larger percentage than the May 2016. New home closings moved from 28 a year earlier to 9 after the figure moved from 24 in May 2015 to 13 in May 2016.
A total of 265 new homes were sold during the 12 months that ended in June, down from 284 for the year that ended in May.
New home closings were 3.6% of total closings a year earlier, and this percentage saw a drop as new home closings this year made up 9 of the 736 total closings. After rising year-over-year in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes rose to $285,459 from last year's $267,429. This was on the heels of a 19.3% gain in May year-over-year.
Average mortgage size on new homes rose from $202,361 to $278,991. Average mortgage size on new homes went from $246,369 in May 2015 to $254,235 in May 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016.
The average unit size of newly sold homes fell from 1,937 square feet a year earlier to 1,819 square feet.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 19.5% of existing home closings, above 16.4% a year earlier. The percentage of existing home closings involving foreclosures rose to 11.0% in June from 8.2% a year earlier and REO closings moved from 8.2% of existing home closings in June 2015 to 8.5% in June 2016.