Closings of new homes jumped year-over-year in June in the Allentown, PA market, bouncing back from a fall in May 2016. New home closings saw a 12.3% climb from a year earlier to 64. This came after a 7.7% drop year-over-year in May.
A total of 629 new homes were sold during the 12 months that ended in June, up from 622 for the year that ended in May.
Out of all housing closings, new home closings represented 5.5%. As a part of the whole, new home closings were 4.8% a year earlier. Closings of new and existing homes remained steady in June after being unchanged in May from a year earlier.
Pricing and Mortgage Trends
In June, there was a 3.2% lift year-over-year in the average price of newly sold homes, reaching $369,462 per unit. This lift is smaller than the 14.2% rise in May year-over-year.
Average mortgage size on new homes went from $298,100 in June 2015 to $298,967 in June 2016. In May 2016, average mortgage size rose 23.2% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings climbed from 50.9% of new closings in June 2015 to 59.4% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings declined to 40.6% of closings from 49.1% of closings.
The average unit size of newly sold homes grew 7.7% year-over-year to 2,568 square feet in June 2016. The average size of newly sold homes moved from 2,344 square feet in May 2015 to 1,042 square feet in May 2016.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 19.7% of existing home closings, higher than 19.2% a year earlier. The percentage of existing home closings involving foreclosures rose to 9.6% in June from 7.3% a year earlier while REO closings as a percentage of existing home closings sank to 10.1% from 11.9% a year earlier.