Grand Rapids, MI - Recent New Home Sales Numbers Suggest Market Drop is Deepening
Posted on: May 07, 2012 09:13:36 AM
The Grand Rapids, MI market saw a drop in new home sales year-over-year in February, and the percentage drop that was steeper than January 2012 gave implication of worsening market conditions. Sales dropped 78.7% from a year earlier to 19, relative to a 3.1% decline in January from the year earlier.
A total of 515 new homes were sold during the 12 months that ended in February, down from 585 for the year that ended in January.
Moving south from a year earlier, new home sales in February 2012 made up 2.4% of overall housing sales, while the year-ago figure was 8.9%. Sales of new and existing homes sank year-over-year in February after also falling in January year-over-year.
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Pricing and Mortgage Trends
In February, the average price of newly sold homes grew year-over-year to $165,481 per unit, a 77.1% gain. This bump is higher than the 30.6% boost in January year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In February 2012, there was a more than twofold rise in the average mortgage size, reaching $149,942. In January 2012, average mortgage size on newly sold homes saw a 23.2% hike year-over-year from a year earlier.
Grand Rapids, MI - Recent New Home Sales Numbers Suggest Market Drop is Deepening
Posted on: May 07, 2012 09:13:36 AM
The Grand Rapids, MI market saw a drop in new home sales year-over-year in February, and the percentage drop that was steeper than January 2012 gave implication of worsening market conditions. Sales dropped 78.7% from a year earlier to 19, relative to a 3.1% decline in January from the year earlier.
A total of 515 new homes were sold during the 12 months that ended in February, down from 585 for the year that ended in January.
Moving south from a year earlier, new home sales in February 2012 made up 2.4% of overall housing sales, while the year-ago figure was 8.9%. Sales of new and existing homes sank year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
In February, the average price of newly sold homes grew year-over-year to $165,481 per unit, a 77.1% gain. This bump is higher than the 30.6% boost in January year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In February 2012, there was a more than twofold rise in the average mortgage size, reaching $149,942. In January 2012, average mortgage size on newly sold homes saw a 23.2% hike year-over-year from a year earlier.
Other Market Trends
The percentage of new home sales belonging to single-family homes has risen from last year while the portion of new home sales belonging to attached units has dropped. Single-family home sales climbed from 36.0% of new sales in February 2011 to 84.2% of sales in February 2012. At the same time, the share of new home sales belonging to attached units dropped to 15.8% of sales from 64.0% of sales.
Foreclosures and real estate owned (REO) sales remained a drag on the market. Together, foreclosures plus REO sales made up 58.0% of existing home sales. In February 2011, they represented 66.8%. The percentage of existing home sales involving foreclosures fell to 31.6% in February from 34.3% a year earlier while REO sales as a percentage of existing home sales slipped to 26.4% from 32.5% a year earlier.
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Source: Housing Intelligence