In the Allentown, PA market, new home closings dropped year-over-year in July, but with a percentage fall not as steep as June 2015, there are hints that the market may be leveling out. Closings fell 27.0% from a year earlier to 46. This was after the housing market saw a 27.1% decline year-over-year in June.
A total of 624 new homes were sold during the 12 months that ended in July, down from 641 for the year that ended in June.
Out of all housing closings, new home closings accounted for 4.1%. This is down from the a year earlier when new home closings made up 5.7% of total closings. Following a year-over-year increase in June, closings of new and existing homes also jumped year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 4.5% in July to $348,915 per unit. This rise is smaller than the 11.4% bump in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 14.0% surge year-over-year to $283,601 in July. In June 2015, average mortgage size on newly sold homes saw a 13.8% bump year-over-year from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 55.6% of new home closings to 56.5% of closings while attached units have gone from 44.4% of closings to 43.5% of closings.
There was a 17.5% fall year-over-year in the average unit size of newly sold homes to 2,006 square feet in July 2015. For newly sold homes, an average size decline contrasting with an average price hike was also seen in June 2015 when the average size of newly sold homes declined 33.1% to 1,522 square feet. The average size of newly sold homes moved from 2,276 square feet in June 2014 to 1,522 square feet in June 2015.
Foreclosures and real estate owned (REO) closings continued to increase in July from a year earlier and stayed a drag on the market. Together, foreclosures plus REO closings accounted for 25.7% of existing home closings, up from 25.4% a year earlier. The percentage of existing home closings involving foreclosures went from 14.7% in July 2014 to 15.4% in July 2015 and REO closings moved from 10.6% of existing home closings in July 2014 to 10.3% in July 2015.