Closings of new homes declined year-over-year in May in the Pittsburgh, PA market, and the decline was by a larger percentage than the April 2016. New home closings moved from 142 a year earlier to 6 after the figure moved from 107 in April 2015 to 12 in April 2016.
A total of 950 new homes were sold during the 12 months that ended in May, down from 1,086 for the year that ended in April.
New home closings were 4.8% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 6 of the 2,633 total closings. Closings of new and existing homes dropped year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $294,102, compared with $369,748 last year. This came after a 3.4% fall in April from a year earlier.
There was a decline in average mortgage size on new homes, going from $312,676 last year to $209,015 in May 2016. Average mortgage size on new homes went from $297,955 in April 2015 to $307,447 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.
The average unit size of newly sold homes rose from 2,663 square feet a year earlier to 3,348 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 13.6% of existing closings, lower than 14.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.2% in May from 7.3% a year earlier while REO closings as a percentage of existing home closings grew to 8.3% from 6.9%.