New home closings in the Salem, OR market sank year-over-year in May, but the decline was less than the year-over-year decline in April. New home closings moved from 24 a year earlier to 13 after the figure moved from 37 in April 2015 to 10 in April 2016.
A total of 283 new homes were sold during the 12 months that ended in May, down from 294 for the year that ended in April.
New home closings were 4.0% of total closings a year earlier, and this percentage saw a fall as new home closings this year made up 13 of the 687 total closings. Closings of new and existing homes gained year-over-year in May following a fall in April year-over-year.
Pricing and Mortgage Trends
The average new home value went from $258,121 last year to $307,824. This followed a 15.8% hike in April year-over-year.
The average mortgage size on new homes was $254,235, up from $246,369. Average mortgage size on new homes went from $226,336 in April 2015 to $244,197 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
The average unit size of newly sold homes rose from 2,028 square feet a year earlier to 2,203 square feet.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 23.6% of existing home closings, up from 15.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 11.4% in May from 7.3% a year earlier while REO closings as a percentage of existing home closings rose to 12.2% from 8.4%.