In the Philadelphia, PA market in December, closings of new homes fell year-over-year, and there were suggestions of weakening market conditions with a percentage drop steeper than that of November 2015. There was a 26.7% fall in new home closings from a year earlier. This followed a 14.5% decline year-over-year in November.
A total of 4,567 new homes were sold during the 12 months that ended in December, down from 4,705 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 6.7% of overall housing closings. A year ago, 7.5% of total closings were new home closings. Following a year-over-year decline in November, closings of new and existing homes also declined year-over-year in December.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $409,669 in December 2015 from $408,465 in December 2014. This followed a 12.2% lift in November year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. The average mortgage size saw a 1.9% boost year-over-year to $317,326 in December. In November 2015, average mortgage size on newly sold homes saw a 9.6% gain year-over-year 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. The share of new home closings belonging to single-family homes gained from 53.6% in December 2014 to 54.6% of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings fell to 45.4% of closings from 46.4% of closings.
For all new homes sold, the average unit size dropped 10.3% year-over-year to 2,110 square feet in December 2015. The average size of newly sold homes moved from 2,489 square feet in November 2014 to 1,821 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 24.3% of existing home closings, below 28.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 11.5% in December from 15.7% a year earlier and REO closings moved from 12.9% of existing home closings in December 2014 to 12.8% in December 2015.