There was a rise in closings of new homes in the Lancaster, PA market in November year-over-year, but the percentage hike was less pronounced than October 2015, indicating the market may be leveling out. New home closings saw a 8.3% jump from a year earlier to 39. This followed a 22.0% rise year-over-year in October.
A total of 521 new homes were sold during the 12 months that ended in November, up from 518 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 7.3% of overall housing closings. A year ago, new home closings accounted for 7.8%. Following a year-over-year increase in October, closings of new and existing homes also rose year-over-year in November.
Pricing and Mortgage Trends
In November, the average price of newly sold homes increased year-over-year to $314,447 per unit, a 3.2% rise. This surge is smaller than the 9.3% hike in October year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 8.1% gain year-over-year to $234,415 in November. In October 2015, average mortgage size grew 15.6% from a year earlier.
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. The share of new home closings belonging to attached units increased from 27.8% of closings in November 2014 to 30.8% of closings in November 2015. Conversely, the share belonging to single-family homes sank to 69.2% of closings from 72.2% of closings.
For all new homes sold, the average unit size dropped 10.5% year-over-year to 2,086 square feet in November 2015. For newly sold homes, an average size fall contrasting with an average price rise was also seen in October 2015 when the average size of newly sold homes declined 13.7% to 1,942 square feet. The average size of newly sold homes moved from 2,249 square feet in October 2014 to 1,942 square feet in October 2015.
Foreclosures and real estate owned (REO) closings increased in November from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings made up 20.3% of existing home closings, up from 11.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 10.0% in November from 2.6% a year earlier while REO closings as a percentage of existing home closings jumped to 10.2% from 9.2%.