In the Grand Rapids, MI market, new home closings declined year-over-year in June, and the percentage fall was steeper than May 2016, giving suggestion the market may be worsening. New home closings saw a fall of 46.6% from the year earlier to 39. This came after a 6.4% decline year-over-year in May.
A total of 547 new homes were sold during the 12 months that ended in June, down from 581 for the year that ended in May.
New home closings accounted for 2.6% of overall housing closings. This is down from the a year earlier when new home closings made up 4.4% of total closings. Closings of new and existing homes declined year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price gained 10.1% year-over-year in June to $274,468 per unit. This gain is better than the 3.1% bump in May year-over-year.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. In June 2016, average mortgage size on new homes sold was $223,247, down 5.3% from a year earlier. Average mortgage size went from $249,298 in May 2015 to $247,644 in May 2016.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have slumped. Attached unit closings climbed from 54.8% of all closings in June 2015 to 69.2% of closings in June 2016. Conversely, the share belonging to single-family homes slid to 30.8% of closings from 45.2% of closings.
There was a 21.9% drop year-over-year in the average unit size of newly sold homes to 1,104 square feet in June 2016. The average size of newly sold homes moved from 1,539 square feet in May 2015 to 1,608 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 11.1% of existing home closings, down from 11.3% a year earlier. The percentage of existing home closings involving foreclosures stayed at 4.4% of closings in June from a year earlier and REO closings moved from 6.9% of existing home closings in June 2015 to 6.6% in June 2016.