In the Kalamazoo, MI market, new home closings declined year-over-year in June, but the decline was less than the year-over-year decline in May. New home closings moved from 23 a year earlier to 10 after the figure moved from 23 in May 2015 to 8 in May 2016.
A total of 150 new homes were sold during the 12 months that ended in June, down from 163 for the year that ended in May.
New home closings represented 10 out of the 601 total closings, which is a smaller percentage than the 23 of 647 total closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of new homes was $277,742, compared with $312,413 last year. This followed a 22.9% surge in May year-over-year.
The average mortgage size on new homes was $265,927, up from $244,696. Average mortgage size on new homes went from $197,957 in May 2015 to $222,492 in May 2016.
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 drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 14.2% of existing home closings, down from 20.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.4% in June from 8.7% a year earlier while REO closings as a percentage of existing home closings slid to 8.8% from 11.4% a year earlier.