In January, there was an increase in closings of new homes in the Philadelphia, PA market year-over-year, on an upswing after a fall in December 2015. New home closings saw a hike of 6.9% from the year earlier to 280. This followed a 20.3% drop year-over-year in December.
A total of 4,753 new homes were sold during the 12 months that ended in January, up from 4,735 for the year that ended in December.
Out of all housing closings, new home closings accounted for 5.7%. A year earlier, new home closings made up 4.9% of total closings. Following a year-over-year decline in December, closings of new and existing homes also dropped year-over-year in January.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in January to $430,372 per unit, a rise of 3.2%. This rise compares to a 1.0% fall in December from a year earlier.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. It climbed to $328,690 in January, a 4.0% bump. Average mortgage size went from $310,650 in December 2014 to $311,933 in December 2015.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 49.2% of new closings in January 2015 to 56.4% of closings in January 2016. Conversely, the share of new home closings belonging to attached units slid to 43.6% of closings from 50.8% of closings.
There was a 15.2% drop year-over-year in the average unit size of newly sold homes to 2,186 square feet in January 2016. The average size of newly sold homes moved from 2,469 square feet in December 2014 to 2,507 square feet in December 2015.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but stayed a drag on the market. Foreclosures and REO closings, taken together, represented 34.6% of existing closings, lower than 36.9% a year earlier. The percentage of existing home closings involving foreclosures went from 21.9% in January 2015 to 22.8% in January 2016 and REO closings as a percentage of existing home closings fell to 11.9% from 15.0% a year earlier.