In May, the Grand Rapids, MI market saw a fall year-over-year in new home closings, and the decline was by a larger percentage than the April 2016. New home closings moved from 42 a year earlier to 7 after the figure moved from 37 in April 2015 to 10 in April 2016.
A total of 264 new homes were sold during the 12 months that ended in May, down from 299 for the year that ended in April.
Last year, 42 of 1,360 total closings were new homes, and this percentage saw a decline as new home closings this year made up 7 of the 1,220 total closings. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average new home price was $224,357, down from $286,376 a year earlier. This was on the heels of a 14.1% decline in April from a year earlier.
There was a decline in average mortgage size on new homes, going from $249,298 last year to $208,489 in May 2016. Average mortgage size on new homes went from $219,332 in April 2015 to $187,828 in April 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.
The average unit size of newly sold homes fell from 1,678 square feet a year earlier to 1,445 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 12.2% of existing closings, lower than 16.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 4.3% in May from 6.9% a year earlier while REO closings as a percentage of existing home closings declined to 7.9% from 9.1% a year earlier.