In the Philadelphia, PA market, new home closings fell year-over-year in June, and the market seemed to be weakening with a percentage decline steeper than in May 2016. Closings dropped 30.0% from a year earlier to 375. In comparison, new home closings in the same month last year saw a 17.4% drop year-over-year in May.
A total of 4,746 new homes were sold during the 12 months that ended in June, down from 4,907 for the year that ended in May.
New home closings made up 4.4% of overall housing closings. This is down from the a year earlier when new home closings represented 5.5% of total closings. Following a year-over-year rise in May, closings of new and existing homes fell year-over-year in June.
Pricing and Mortgage Trends
In June, the average price for new home closings was $415,724, a 4.8% fall from last year. This fall is larger than the 2.7% decline in May from a year earlier.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. It declined 1.8% in June from a year earlier to $329,957. Average mortgage size declined 3.8% in May 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 46.1% of new home closings to 46.4% of closings while attached units have gone from 53.9% of closings to 53.6% of closings.
There was a 13.9% decline year-over-year in the average unit size of newly sold homes to 2,222 square feet in June 2016. In May, the average size of new homes sold went from 2,570 square feet a year earlier to 2,598 square feet.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 20.8% of existing home closings, higher than 18.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 11.8% in June from 9.2% a year earlier and REO closings moved from 9.5% of existing home closings in June 2015 to 9.0% in June 2016.