New home closings fell year-over-year in March in the State College, PA market, and the decline was similar to February 2016. New home closings moved from 6 a year earlier to 4 after the figure moved from 3 in February 2015 to 2 in February 2016.
A total of 119 new homes were sold during the 12 months that ended in March, down from 121 for the year that ended in February.
New home closings were 4 out of the 130 total closings, down on a percentage basis from 6 of 121 a year earlier. Closings of new and existing homes rose year-over-year in March after also rising in February year-over-year.
Pricing and Mortgage Trends
The average per-unit price of new homes was $265,797, compared with $374,222 last year. This was on the heels of a 2.9% decline in February from a year earlier.
The average mortgage size moved to $213,888, down from last year's $270,364.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in March 2016.
The average unit size of newly sold homes fell from 2,529 square feet a year earlier to 1,790 square feet.
Foreclosures and real estate owned (REO) closings rose in March from a year earlier and did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 6.3% of existing home closings, above 6.1% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.4% in March from 4.3% a year earlier while REO closings as a percentage of existing home closings jumped to 4.0% from 1.7%.