Closings of new homes fell year-over-year in November in the Philadelphia, PA market, but with a percentage decline less steep than October 2015, there are signals the market may be leveling out. New home closings saw a fall of 18.1% from the year earlier to 334. This came on the heels of a 20.6% decline year-over-year in October.
A total of 4,566 new homes were sold during the 12 months that ended in November, down from 4,640 for the year that ended in October.
As a percentage of overall housing closings, new home closings accounted for 6.4% of overall housing closings. A year ago, new home closings accounted for 6.8%. Following a year-over-year decline in October, closings of new and existing homes also dropped year-over-year in November.
Pricing and Mortgage Trends
In November, there was a 14.2% hike year-over-year in the average price of newly sold homes, reaching $443,906 per unit. This rise is higher than the 6.4% bump in October year-over-year.
For newly sold homes, the average mortgage size gained year-over-year along with new home prices. In November 2015, average mortgage size gained 11.2% from a year earlier to $338,873. Average mortgage size jumped 4.9% in October 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 44.1% of closings in November 2014 to 46.7% of closings in November 2015. At the same time, the share belonging to single-family homes dropped to 53.3% of closings from 55.9% of closings.
There was a 2.4% decline year-over-year in the average unit size of newly sold homes to 2,429 square feet in November 2015. In October, the average size of new homes sold went from 2,523 square feet a year earlier to 2,682 square feet.
Foreclosures and real estate owned (REO) closings decreased in November from a year earlier, but remained a burden on the market. Together, foreclosures plus REO closings represented 28.1% of existing home closings, down from 29.3% a year earlier. The percentage of existing home closings involving foreclosures sank to 16.0% in November from 18.2% a year earlier while REO closings as a percentage of existing home closings climbed to 12.1% from 11.1%.