Closings of new homes in the Allentown, PA market fell year-over-year in August, but the percentage fall was not as steep as July 2015, giving suggestion that the market may be stabilizing. New home closings saw a decline of 13.9% from the year earlier to 68. This followed a 28.8% fall year-over-year in July.
A total of 649 new homes were sold during the 12 months that ended in August, down from 660 for the year that ended in July.
Out of all housing closings, new home closings represented 6.0%. This is a fall 7.8% of closings a year earlier. For new and existing homes, closings increased year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 11.0% lift year-over-year to $373,258 per unit in August. This rise is an improvement over the 3.8% gain in July year-over-year.
The average mortgage size on newly sold homes saw a boost year-over-year along with new home prices. In August 2015, there was a 7.4% boost in the average mortgage size, reaching $274,546. In July 2015, average mortgage size on newly sold homes saw a 12.2% bump year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 51.9% of new closings in August 2014 to 67.6% of closings in August 2015. At the same time, the share of new home closings belonging to attached units fell to 32.4% of closings from 48.1% of closings.
For all new homes sold, the average unit size declined 19.1% year-over-year to 1,990 square feet in August 2015. For newly sold homes, an average size decline contrasting with an average price surge was also seen in July 2015 when the average size of newly sold homes fell 17.7% to 2,006 square feet. In July, the average size of new homes sold went from 2,437 square feet a year earlier to 2,006 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 22.5% of existing closings, lower than 23.1% a year earlier. The percentage of existing home closings involving foreclosures went from 12.4% in August 2014 to 12.9% in August 2015 and REO closings as a percentage of existing home closings sank to 9.7% from 10.7% a year earlier.