In the Erie, PA market, closings of new homes declined year-over-year in February, and the decline was by a larger percentage than the January 2016. New home closings moved from 3 a year earlier to 1 after the figure moved from 2 in January 2015 to 1 in January 2016.
A total of 33 new homes were sold during the 12 months that ended in February, down from 35 for the year that ended in January.
Last year, 3 of 161 total closings were new homes, and this percentage saw a decline as new home closings this year made up 1 of the 240 total closings. Following a drop in January year-over-year, closings of new and existing homes rose year-over-year in February.
Pricing and Mortgage Trends
The average per-unit price of new homes was $65,000, compared with $292,438 last year. This followed a 28.7% rise in January year-over-year.
Average mortgage size on new homes fell from $135,000 to $68,899. Average mortgage size on new homes went from $194,635 in January 2015 to $75,000 in January 2016.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
Foreclosures and real estate owned (REO) closings continued to rise in February from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, made up 26.8% of existing home closings, higher than 17.1% a year earlier. The percentage of existing home closings involving foreclosures rose to 17.2% in February from 6.3% a year earlier while REO closings as a percentage of existing home closings declined to 9.6% from 10.8% a year earlier.