In the Grand Rapids, MI market in September, new home closings slid year-over-year, but the decline was less than the year-over-year decline in August. New home closings moved from 23 a year earlier to 7 after the figure moved from 45 in August 2014 to 6 in August 2015.
A total of 108 new homes were sold during the 12 months that ended in September, down from 124 for the year that ended in August.
New home closings were 2.2% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 7 of the 1,364 total closings. Following a year-over-year increase in August, closings of new and existing homes also gained year-over-year in September.
Pricing and Mortgage Trends
The average price of new homes rose to $243,406 from last year's $194,916. This was on the heels of a 10.6% drop in August from a year earlier.
The average mortgage size on new homes was $209,157, up from $148,782. Average mortgage size on new homes went from $204,922 in August 2014 to $166,427 in August 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.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 15.6% of existing home closings, below 17.6% a year earlier. The percentage of existing home closings involving foreclosures declined to 6.7% in September from 7.9% a year earlier and REO closings moved from 9.7% of existing home closings in September 2014 to 8.9% in September 2015.