In the Detroit, MI market in September, closings of new homes fell year-over-year, and the market seemed to be worsening in light of the percentage decline steeper than August 2015. New home closings saw a drop of 50.2% from the year earlier to 109. This was after the housing market saw a 40.5% fall year-over-year in August.
A total of 1,841 new homes were sold during the 12 months that ended in September, down from 1,951 for the year that ended in August.
New home closings made up 1.7% of overall housing closings. This is down from the 3.0% of closings a year earlier. Closings of new and existing homes sank year-over-year in September after also falling in August year-over-year.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $330,054 in September, up 13.2% from last year. This lift is an improvement over the 9.8% hike in August year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 8.8% surge year-over-year to $278,214 in September. In August 2015, average mortgage size on newly sold homes saw a 6.1% fall from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. Attached unit closings climbed from 58.4% of all closings in September 2014 to 60.6% of closings in September 2015. Meanwhile, single-family home closings as a percentage of all new home closings sank to 39.4% of closings from 41.6% of closings.
The average unit size of newly sold homes dropped 18.0% year-over-year to 2,243 square feet in September 2015. This decline was opposite the price bump, a pattern also seen in August 2015 when the average size of newly sold homes slid 8.9% to 2,290 square feet. In August, the average size of new homes sold went from 2,515 square feet a year earlier to 2,290 square feet.
Foreclosures and real estate owned (REO) closings declined in September from a year earlier, but stayed a drag on the market. Out of all existing home closings, foreclosures combined with REO closings made up 31.5% of closings, below 33.1% a year earlier. The percentage of existing home closings involving foreclosures went from 13.9% in September 2014 to 13.0% in September 2015 and REO closings moved from 19.2% of existing home closings in September 2014 to 18.5% in September 2015.