In April, there was a fall year-over-year in new home closings in the Detroit, MI market, and there were hints the market may be worsening with a percentage decline steeper than that of March 2016. Closings fell 59.6% from a year earlier to 74. This came on the heels of a 43.8% fall year-over-year in March.
A total of 2,055 new homes were sold during the 12 months that ended in April, down from 2,164 for the year that ended in March.
Out of all housing closings, new home closings accounted for 1.3%. This is down from the 2.8% of closings a year earlier. Closings of new and existing homes declined year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $313,693 per unit in April, up 1.5%from a year earlier. This bump compares to a 1.1% drop in March from a year earlier.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In April 2016, the average mortgage size on newly sold homes saw a 4.0% decline from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 12.6% decline from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes grew from 43.2% in April 2015 to 48.6% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings sank to 51.4% of closings from 56.8% of closings.
There was a 8.3% drop year-over-year in the average unit size of newly sold homes to 2,401 square feet in April 2016. In March, the average size of new homes sold went from 2,736 square feet a year earlier to 2,185 square feet.
Foreclosures and real estate owned (REO) closings decreased in April from a year earlier, but remained a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 31.0% of closings, below 34.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 12.1% in April from 15.9% a year earlier and REO closings moved from 18.0% of existing home closings in April 2015 to 18.9% in April 2016.