Detroit, MI - Newest New Home Sales Numbers Give Hints Market Fall is Deepening
Posted on: May 06, 2012 09:23:57 AM
In the Detroit, MI market in February, new home sales fell year-over-year, and there were suggestions the market may be worsening with a percentage drop more severe than that of January 2012. New home sales saw a decline of 48.8% from the year earlier to 64. This was after the housing market saw a 25.2% drop year-over-year in January.
A total of 1,641 new homes were sold during the 12 months that ended in February, down from 1,702 for the year that ended in January.
As a percentage of overall housing sales, new home sales accounted for 1.2% of overall housing sales. A year ago, new home sales made up 1.7%. Following a year-over-year decline in January, sales of new and existing homes also sank year-over-year in February.
Advertisement
Pricing and Mortgage Trends
Average price of newly sold homes had a 11.0% gain year-over-year to $212,225 per unit in February. This bump is an improvement over the 3.1% rise in January year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It dropped 13.3% in February from a year earlier, reaching $201,632. Average mortgage size slipped 1.3% in January 2012 from a year earlier.
Detroit, MI - Newest New Home Sales Numbers Give Hints Market Fall is Deepening
Posted on: May 06, 2012 09:23:57 AM
In the Detroit, MI market in February, new home sales fell year-over-year, and there were suggestions the market may be worsening with a percentage drop more severe than that of January 2012. New home sales saw a decline of 48.8% from the year earlier to 64. This was after the housing market saw a 25.2% drop year-over-year in January.
A total of 1,641 new homes were sold during the 12 months that ended in February, down from 1,702 for the year that ended in January.
As a percentage of overall housing sales, new home sales accounted for 1.2% of overall housing sales. A year ago, new home sales made up 1.7%. Following a year-over-year decline in January, sales of new and existing homes also sank year-over-year in February.
Pricing and Mortgage Trends
Average price of newly sold homes had a 11.0% gain year-over-year to $212,225 per unit in February. This bump is an improvement over the 3.1% rise in January year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. It dropped 13.3% in February from a year earlier, reaching $201,632. Average mortgage size slipped 1.3% in January 2012 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home sales have moved from 48.8% of new home sales to 48.4% of sales while attached units have gone from 51.2% of sales to 51.6% of sales.
For all new homes sold, the average unit size slid 34.2% year-over-year to 1,596 square feet in February 2012. The average size of newly sold homes moved from 1,740 square feet in January 2011 to 1,963 square feet in January 2012.
Foreclosures and real estate owned (REO) sales remained a burden on the market. Together, foreclosures plus REO sales accounted for 79.8% of existing home sales. They made up 81.4% in February 2011. The percentage of existing home sales involving foreclosures fell to 41.3% in February from 45.0% a year earlier while REO sales as a percentage of existing home sales rose to 38.5% from 36.5%.
Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in this market area.
Source: Housing Intelligence