Closings of new homes declined year-over-year in November in the Grand Rapids, MI market, and the decline was by a larger percentage than the October 2015. New home closings moved from 12 a year earlier to 5 after the figure moved from 12 in October 2014 to 6 in October 2015.
A total of 94 new homes were sold during the 12 months that ended in November, down from 101 for the year that ended in October.
New home closings were 5 out of the 868 total closings, a move on a percentage basis from 12 of 846 a year earlier. Closings of new and existing homes increased year-over-year in November after also rising in October year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes in November 2015 was $219,391, down from last year's $227,147. This came after a 14.7% decline in October from a year earlier.
Average mortgage size on new homes increased to $185,420 from $177,266 last year. Average mortgage size on new homes went from $189,023 in October 2014 to $137,978 in October 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 1,276 square feet a year earlier to 1,203 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 19.8% of existing home closings, below 22.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 7.3% in November from 9.7% a year earlier and REO closings moved from 12.8% of existing home closings in November 2014 to 12.5% in November 2015.