The Philadelphia, PA market saw a drop in new home closings year-over-year in July, and the percentage fall, which was steeper than June 2015, gave hints that the market may be worsening. Closings declined 15.2% from a year earlier to 378. This followed a 9.9% drop year-over-year in June.
A total of 4,615 new homes were sold during the 12 months that ended in July, down from 4,683 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 4.4%. This is down from the 5.4% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes also gained year-over-year in July.
Pricing and Mortgage Trends
In July, the average price for new home closings was $430,493, a 5.9% drop from last year. This fall compares to a 6.4% lift in June year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In July 2015, average mortgage size on new homes sold was $327,836, down 7.9% from a year earlier. Average mortgage size grew 5.3% in June 2015 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 50.7% of new home closings to 50.3% of closings while attached units have gone from 49.3% of closings to 49.7% of closings.
There was a 24.6% drop year-over-year in the average unit size of newly sold homes to 1,933 square feet in July 2015. The average size of newly sold homes moved from 2,611 square feet in June 2014 to 2,072 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 19.6% of existing home closings, below 24.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 10.5% in July from 15.2% a year earlier and REO closings moved from 8.8% of existing home closings in July 2014 to 9.1% in July 2015.