New home closings in the Philadelphia, PA market dropped year-over-year in August, but the percentage fall was less than that of July 2015, hinting that the market may be strengthening. New home closings saw a fall of 5.5% from the year earlier to 409. This followed a 12.6% fall year-over-year in July.
A total of 4,747 new homes were sold during the 12 months that ended in August, down from 4,771 for the year that ended in July.
Of the total number of closings, new home closings made up 5.0%. A year ago, 5.8% of total closings were new home closings. Closings of new and existing homes increased year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 2.3% bump year-over-year as it grew to $426,707 per unit. This lift compares to a 7.4% decline in July from a year earlier.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. Average mortgage size fell 1.2% to $328,900 in August from a year earlier. Average mortgage size slid 7.6% in July 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 45.0% of closings in August 2014 to 51.6% of closings in August 2015. Conversely, the share belonging to single-family homes fell to 48.4% of closings from 55.0% of closings.
There was a 3.0% decline year-over-year in the average unit size of newly sold homes to 2,594 square feet in August 2015. In July, the average size of new homes sold went from 2,568 square feet a year earlier to 1,975 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 22.3% of closings, below 23.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 12.3% in August from 13.6% a year earlier and REO closings moved from 9.6% of existing home closings in August 2014 to 10.0% in August 2015.