In the Allentown, PA market, new home closings sank year-over-year in May, a move downward following a bump in April 2016. There was a 5.9% decline in new home closings from a year earlier. This was after the housing market saw a 16.3% boost year-over-year in April.
A total of 621 new homes were sold during the 12 months that ended in May, down from 624 for the year that ended in April.
Out of all housing closings, new home closings accounted for 5.6%. A year ago, 5.9% of total closings were new home closings. Following a year-over-year rise in April, closings of new and existing homes dropped year-over-year in May.
Pricing and Mortgage Trends
Average price of newly sold homes had a 12.7% rise year-over-year to $356,039 per unit in May. This gain compares to a 9.9% decline in April from a year earlier.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. The average mortgage size rose to $296,584 in May, marking a 23.2% bump compared with a year earlier. In April 2016, average mortgage size rose 4.2% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings jumped from 49.0% of new closings in May 2015 to 54.2% of closings in May 2016. At the same time, the share of new home closings belonging to attached units sank to 45.8% of closings from 51.0% of closings.
There was a 55.8% drop year-over-year in the average unit size of newly sold homes to 1,042 square feet in May 2016. The average size of newly sold homes moved from 2,575 square feet in April 2015 to 1,949 square feet in April 2016.
Foreclosures and real estate owned (REO) closings increased in May from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 21.6% of existing home closings, higher than 19.4% a year earlier. The percentage of existing home closings involving foreclosures went from 7.0% in May 2015 to 8.0% in May 2016 and REO closings as a percentage of existing home closings increased to 13.7% from 12.4%.