In February, there was an increase in closings of new homes in the Reading, PA market year-over-year, and the increase was greater than January 2016. New home closings moved from 1 a year earlier to 14 after the figure moved from 7 in January 2015 to 12 in January 2016.
A total of 196 new homes were sold during the 12 months that ended in February, up from 183 for the year that ended in January.
New home closings were 14 out of 416 total closings, making up 3.4%. This is up on a percentage basis from 1 of 358 a year earlier. Closings of new and existing homes grew year-over-year in February after also rising in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose to $258,777 from last year's $151,900. This was on the heels of a 13.8% boost in January year-over-year.
From the year-ago figure of $149,148, the average mortgage size on new homes moved up to $213,266. Average mortgage size on new homes went from $193,066 in January 2015 to $199,960 in January 2016.
Other Market Trends
As a share of new home closings, single-family home closings have risen from last year while the share belonging to attached units has fallen.
The average unit size of newly sold homes rose from 1,542 square feet a year earlier to 2,768 square feet.
Foreclosures and real estate owned (REO) closings continued to rise in February from a year earlier and remained a drag on the market. Foreclosures and REO closings, taken together, represented 37.3% of existing home closings, up from 36.7% a year earlier. The percentage of existing home closings involving foreclosures rose to 19.7% in February from 17.4% a year earlier while REO closings as a percentage of existing home closings dropped to 17.7% from 19.3% a year earlier.