In August, there was a fall year-over-year in new home closings in the Lansing, MI market, and the decline was by a larger percentage than the July 2015. New home closings moved from 12 a year earlier to 2 after the figure moved from 9 in July 2014 to 7 in July 2015.
A total of 80 new homes were sold during the 12 months that ended in August, down from 90 for the year that ended in July.
On a percentage basis, new home closings as a part of total closings decreased to 0.3% from 1.7% a year earlier. Closings of new and existing homes rose year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average new home price was $317,450, up from $205,712 a year earlier. This followed a 33.9% lift in July year-over-year.
Average mortgage size on new homes went from $207,436 a year earlier to $296,200. Average mortgage size on new homes went from $230,965 in July 2014 to $311,385 in July 2015.
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 fell from 2,962 square feet a year earlier to 1,837 square feet.
Foreclosures and real estate owned (REO) closings declined in August from a year earlier, but stayed a drag on the market. Combined, foreclosures plus REO closings represented 27.1% of existing home closings, below 36.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 9.6% in August from 12.0% a year earlier while REO closings as a percentage of existing home closings fell to 17.6% from 23.9% a year earlier.