In September, the Salem, OR market saw a fall year-over-year in new home closings, and the decline was by a larger percentage than the August 2015. New home closings moved from 36 a year earlier to 4 after the figure moved from 31 in August 2014 to 10 in August 2015.
A total of 241 new homes were sold during the 12 months that ended in September, down from 273 for the year that ended in August.
On a percentage basis, new home closings as a part of total closings decreased to 0.5% from 6.8% a year earlier. Closings of new and existing homes grew year-over-year in September after also rising in August year-over-year.
Pricing and Mortgage Trends
The average new home value went from $263,978 last year to $279,500. This was on the heels of a 9.4% gain in August year-over-year.
Average mortgage size on new homes went from $215,333 a year earlier to $268,396. Average mortgage size on new homes went from $206,781 in August 2014 to $269,240 in August 2015.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes fell from 2,193 square feet a year earlier to 2,035 square feet.
Foreclosures and real estate owned (REO) closings increased in September from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 23.6% of existing home closings, up from 22.6% a year earlier. The percentage of existing home closings involving foreclosures went from 11.6% in September 2014 to 12.3% in September 2015 and REO closings moved from 11.0% of existing home closings in September 2014 to 11.2% in September 2015.