Closings of new homes fell year-over-year in May in the Reading, PA market, but the decline was less than the year-over-year decline in April. New home closings moved from 16 a year earlier to 9 after the figure moved from 12 in April 2015 to 6 in April 2016.
A total of 188 new homes were sold during the 12 months that ended in May, down from 195 for the year that ended in April.
Last year, 16 of 563 total closings were new homes, and this percentage saw a decline as new home closings this year made up 9 of the 599 total closings. Following a decline in April year-over-year, closings of new and existing homes grew year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes rose to $279,457 from last year's $254,261. This came after a 11.8% surge in April year-over-year.
Average mortgage size on new homes increased to $257,761 from $218,885 last year. Average mortgage size on new homes went from $206,307 in April 2015 to $218,151 in April 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 22.5% of existing home closings, below 33.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 10.3% in May from 18.6% a year earlier while REO closings as a percentage of existing home closings dropped to 12.2% from 14.8% a year earlier.