Closings of new homes in the Kalamazoo, MI market declined year-over-year in January, sliding after a growth in December 2015. New home closings moved from 12 a year earlier to 3 after the figure moved from 11 in December 2014 to 15 in December 2015.

A total of 187 new homes were sold during the 12 months that ended in January, down from 196 for the year that ended in December.

On a percentage basis, new home closings as a part of total closings decreased to 0.9% from 3.7% a year earlier. For new and existing homes, closings increased year-over-year in January after also increasing in December year-over-year.

Pricing and Mortgage Trends

The average price of new homes was $259,626, an increase from $232,386 a year earlier. This followed a 6.5% fall in December from a year earlier.

The average mortgage size moved to $189,311, down from last year's $204,081. Average mortgage size on new homes went from $250,431 in December 2014 to $215,607 in December 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 decreased in January from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings represented 38.5% of existing home closings, below 40.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 16.8% in January from 24.4% a year earlier while REO closings as a percentage of existing home closings gained to 21.7% from 16.3%.

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