In June, there was a fall year-over-year in new home closings in the Lancaster, PA market, but with a percentage drop less steep than May 2016, there are signs the market may be evening out. There was a 2.0% fall in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 18.9% fall 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.
New home closings accounted for 6.5% of overall housing closings. This is down from the 7.9% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes also climbed year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes declined by 6.3% year-over-year to $306,777 per unit in June. This drop is larger than the 3.7% decline in May from a year earlier.
In contrast to new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In June 2016, the average mortgage size was $263,757, up 8.4% from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 4.8% gain year-over-year from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. Attached unit closings rose from 23.5% of all closings in June 2015 to 44.0% of closings in June 2016. At the same time, the share belonging to single-family homes sank to 56.0% of closings from 76.5% of closings.
The average unit size of newly sold homes fell 12.0% year-over-year to 2,067 square feet in June 2016. A drop was also seen in May 2016 when the average size of new homes sold sank 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 drop from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 8.5% of existing home closings, down from 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.