There was an increase in closings of new homes in the Lancaster, PA market in July year-over-year, bouncing back from a drop in June 2015. New home closings saw a hike of 1.9% from the year earlier to 53. This followed a 12.5% decline year-over-year in June.
A total of 515 new homes were sold during the 12 months that ended in July, up from 514 for the year that ended in June.
Out of all housing closings, new home closings represented 7.7%. As a part of the whole, new home closings were 6.9% a year earlier. Closings of new and existing homes slid year-over-year in July after also falling in June year-over-year.
Pricing and Mortgage Trends
From July 2014 to July 2015, the average price of newly sold homes went from $280,173 to $279,242. This followed a 4.2% bump in June year-over-year.
Average mortgage size on new homes saw a fall year-over-year in contrast to prices of new homes. In July 2015, average mortgage size on new homes sold was $207,842, down 6.2% from a year earlier. In June 2015, average mortgage size dropped 11.4% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes grew from 65.4% in July 2014 to 67.9% of closings in July 2015. Conversely, the share of new home closings belonging to attached units sank to 32.1% of closings from 34.6% of closings.
For all new homes sold, the average unit size declined 6.2% year-over-year to 1,994 square feet in July 2015. In June, the average size of new homes sold went from 2,237 square feet a year earlier to 1,546 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 20.3% of existing home closings, down from 24.4% a year earlier. The percentage of existing home closings involving foreclosures slid to 13.2% in July from 18.2% a year earlier and REO closings moved from 6.2% of existing home closings in July 2014 to 7.1% in July 2015.