In the Reading, PA market, closings of new homes sank year-over-year in May, but the decline was less than the year-over-year decline in April. New home closings moved from 16 a year earlier to 9 after the figure moved from 12 in April 2015 to 6 in April 2016.
A total of 188 new homes were sold during the 12 months that ended in May, down from 195 for the year that ended in April.
New home closings were 9 out of the 599 total closings, down on a percentage basis from 16 of 563 a year earlier. Following a decline in April year-over-year, closings of new and existing homes gained year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes was $279,457, an increase from $254,261 a year earlier. This came after a 11.8% bump in April year-over-year.
Average mortgage size on new homes rose from $218,885 to $257,761. Average mortgage size on new homes went from $206,307 in April 2015 to $218,151 in April 2016.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 22.5% of existing home closings, down from 33.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.3% in May from 18.6% a year earlier while REO closings as a percentage of existing home closings sank to 12.2% from 14.8% a year earlier.