In the Philadelphia, PA market, closings of new homes fell year-over-year in June, and the percentage decline was more severe than May 2015, indicating the market may be worsening. New home closings saw a drop of 16.3% from the year earlier to 412. This followed a 9.2% fall year-over-year in May.
A total of 4,574 new homes were sold during the 12 months that ended in June, down from 4,654 for the year that ended in May.
Of the total number of closings, new home closings made up 5.4%. A year ago, new home closings made up 6.0%. Closings of new and existing homes sank year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 4.6% rise year-over-year to $424,128 per unit in June. This hike is smaller than the 8.4% gain in May year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. Average mortgage size increased 4.2% to $328,420 in June from a year earlier. In May 2015, average mortgage size jumped 4.4% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have gained from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units grew from 47.4% of closings in June 2014 to 55.3% of closings in June 2015. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 44.7% of closings from 52.6% of closings.
There was a 25.3% drop year-over-year in the average unit size of newly sold homes to 1,959 square feet in June 2015. For newly sold homes, an average size drop contrasting with an average price lift was also seen in May 2015 when the average size of newly sold homes slid 33.5% to 1,727 square feet. The average size of newly sold homes moved from 2,597 square feet in May 2014 to 1,727 square feet in May 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings represented 15.1% of closings, below 22.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 6.2% in June from 13.4% a year earlier and REO closings moved from 9.4% of existing home closings in June 2014 to 8.9% in June 2015.