Latest Numbers Show Prices of New Homes Increase in Grand Rapids, Sales Drop
Posted on: May 06, 2013 07:14:01 AM
In the Grand Rapids, MI market, new home closings slid year-over-year in February, and the percentage drop was steeper than January 2013. New home closings declined by 20.0% in February 2013 from a year earlier, after closings saw a 13.3% drop in January from the year earlier.
A total of 378 new homes were sold during the 12 months that ended in February, down from 382 for the year that ended in January.
Out of all housing closings, new home closings accounted for 2.1%. They made up 2.4% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes slipped year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 7.2% in February to $194,938 per unit. This rise is smaller than the 10.3% bump in January year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. In February 2013, the average mortgage size on newly sold homes saw a 4.6% rise from a year earlier. In January 2013, average mortgage size increased 3.7% from a year earlier. The overall percentage of sale price that was being financed dipped 2.1 percentage points year-over-year to 87.1% in February 2013.
Latest Numbers Show Prices of New Homes Increase in Grand Rapids, Sales Drop
Posted on: May 06, 2013 07:14:01 AM
In the Grand Rapids, MI market, new home closings slid year-over-year in February, and the percentage drop was steeper than January 2013. New home closings declined by 20.0% in February 2013 from a year earlier, after closings saw a 13.3% drop in January from the year earlier.
A total of 378 new homes were sold during the 12 months that ended in February, down from 382 for the year that ended in January.
Out of all housing closings, new home closings accounted for 2.1%. They made up 2.4% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes slipped year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes increased year-over-year 7.2% in February to $194,938 per unit. This rise is smaller than the 10.3% bump in January year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. In February 2013, the average mortgage size on newly sold homes saw a 4.6% rise from a year earlier. In January 2013, average mortgage size increased 3.7% from a year earlier. The overall percentage of sale price that was being financed dipped 2.1 percentage points year-over-year to 87.1% in February 2013.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 85.0% in February 2012 to 93.8% of closings in February 2013. Meanwhile, attached units as a percentage of all new home closings sank to 6.2% of closings from 15.0% of closings.
Foreclosures and real estate owned (REO) closings decreased in February from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, accounted for 47.2% of existing closings, lower than 59.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 20.9% in February from 32.8% a year earlier and REO closings moved from 26.8% of existing home closings in February 2012 to 26.3% in February 2013.
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Source: Housing Intelligence