Closings of new homes fell year-over-year in June in the Lancaster, PA market, but there were signals the market may be evening out from a percentage decline less than May 2016. New home closings saw a 2.0% decline from a year earlier to 50. This was after the housing market saw a 18.9% decline year-over-year in May.
A total of 568 new homes were sold during the 12 months that ended in June, down from 569 for the year that ended in May.
Out of all housing closings, new home closings accounted for 6.5%. This is down from the a year earlier when new home closings made up 7.9% of total closings. Following a year-over-year increase in May, closings of new and existing homes also gained year-over-year in June.
Pricing and Mortgage Trends
For newly sold homes, the average price dropped 6.3% year-over-year in June to $306,777 per unit. This decline is larger than the 3.7% drop in May from a year earlier.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. In June 2016, average mortgage size rose 8.4% from a year earlier to $263,757. In May 2016, average mortgage size on newly sold homes saw a 4.8% boost year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. Attached unit closings jumped from 23.5% of all closings in June 2015 to 44.0% of closings in June 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 56.0% of closings from 76.5% of closings.
There was a 12.0% fall year-over-year in the average unit size of newly sold homes to 2,067 square feet in June 2016. A decrease in both the average size and price of newly sold homes was also seen in May 2016 when the average size climbed 23.1% to 1,557 square feet. The average size of newly sold homes moved from 2,026 square feet in May 2015 to 1,557 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 8.5% of existing closings, lower than 10.0% a year earlier. The percentage of existing home closings involving foreclosures went from 1.8% in June 2015 to 1.0% in June 2016 and REO closings moved from 8.2% of existing home closings in June 2015 to 7.5% in June 2016.