In the Reading, PA market in June, closings of new homes gained year-over-year, rebounding from a year-over-year decline in May 2016. New home closings moved from 16 a year earlier to 19 after the figure moved from 16 in May 2015 to 9 in May 2016.
A total of 191 new homes were sold during the 12 months that ended in June, up from 188 for the year that ended in May.
New home closings represented 2.8% of overall housing closings. A year ago, new home closings accounted for 2.5%. Following a year-over-year increase in May, closings of new and existing homes also jumped year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes was $305,600 per unit in June, up 15.1%from a year earlier. This gain is higher than the 9.9% hike in May year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. In June 2016, there was a 27.2% gain in the average mortgage size, reaching $262,889. Average mortgage size on new homes went from $218,885 in May 2015 to $257,761 in May 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. Attached unit closings increased from 12.5% of all closings in June 2015 to 21.1% of closings in June 2016. At the same time, the share belonging to single-family homes slid to 78.9% of closings from 87.5% of closings.
The average unit size of newly sold homes sank 44.7% year-over-year to 1,497 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 19.0% of existing closings, lower than 24.0% a year earlier. The percentage of existing home closings involving foreclosures sank to 9.1% in June from 13.4% a year earlier and REO closings moved from 10.6% of existing home closings in June 2015 to 9.9% in June 2016.