In the State College, PA market in August, new home closings sank year-over-year, but the decline was less than the year-over-year decline in July. New home closings moved from 17 a year earlier to 2 after the figure moved from 20 in July 2014 to 1 in July 2015.
New home closings were 10.7% of total closings a year earlier, and this percentage saw a decline as new home closings this year made up 2 of the 148 total closings. Closings of new and existing homes dropped year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $279,950, compared with $379,184 last year. This followed a 18.5% fall in July from a year earlier.
Average mortgage size on new homes rose from $246,193 to $258,900. Average mortgage size on new homes went from $254,669 in July 2014 to $237,600 in July 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in August 2015.
The average unit size of newly sold homes fell from 2,632 square feet a year earlier to 1,917 square feet.
Foreclosures and real estate owned (REO) closings rose in August from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 12.3% of existing home closings, up from 7.0% a year earlier. The percentage of existing home closings involving foreclosures rose to 6.8% in August from 3.5% a year earlier while REO closings as a percentage of existing home closings rose to 5.5% from 3.5%.