Closings of new homes in the Muskegon, MI market sank year-over-year in June, but the decline was less than the year-over-year decline in May. New home closings moved from 5 a year earlier to 1 after the figure moved from 7 in May 2015 to 1 in May 2016.
New home closings represented 1 out of the 200 total closings, which is a smaller percentage than the 5 of 216 total closings a year earlier. Following a year-over-year decline in May, closings of new and existing homes also fell year-over-year in June.
Pricing and Mortgage Trends
The average price for newly sold homes moved north to $312,000 from $175,456 a year ago. This came after a 8.1% drop in May from a year earlier.
The average mortgage size on new homes was $312,000, up from $166,039. Average mortgage size on new homes went from $187,128 in May 2015 to $88,000 in May 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.
The average unit size of newly sold homes rose from 1,475 square feet a year earlier to 2,080 square feet.
Foreclosures and real estate owned (REO) closings fell in June from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 31.2% of closings, below 35.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 11.1% in June from 19.9% a year earlier while REO closings as a percentage of existing home closings grew to 20.1% from 15.6%.