In June, the Allentown, PA market saw a decline year-over-year in new home closings, but the percentage drop was an improvement from May 2015, suggesting the market may be stabilizing. There was a 27.1% drop in new home closings from a year earlier. This followed a 27.5% decline year-over-year in May.
A total of 640 new homes were sold during the 12 months that ended in June, down from 659 for the year that ended in May.
Out of all housing closings, new home closings accounted for 4.6%. This is a fall 6.9% of closings a year earlier. Following a decline in May year-over-year, closings of new and existing homes gained year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes increased year-over-year to $354,592 per unit, a 11.4% boost. This lift is better than the 5.5% bump in May year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In June 2015, there was a 13.8% bump in the average mortgage size, reaching $289,459. In May 2015, average mortgage size on newly sold homes saw a 4.2% hike year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have dipped. Attached unit closings climbed from 48.6% of all closings in June 2014 to 52.9% of closings in June 2015. At the same time, the share belonging to single-family homes dropped to 47.1% of closings from 51.4% of closings.
For all new homes sold, the average unit size dropped 33.1% year-over-year to 1,522 square feet in June 2015. This drop was opposite the price rise, a pattern also seen in May 2015 when the average size of newly sold homes slid 18.9% to 1,857 square feet. The average size of newly sold homes moved from 2,289 square feet in May 2014 to 1,857 square feet in May 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 17.7% of existing closings, lower than 24.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.7% in June from 12.6% a year earlier and REO closings moved from 11.5% of existing home closings in June 2014 to 12.0% in June 2015.