The Lancaster, PA market saw a drop in new home closings year-over-year in August, a downhill move after a surge in July 2015. New home closings saw a 23.3% fall from a year earlier to 46. This followed a 1.9% hike year-over-year in July.
A total of 506 new homes were sold during the 12 months that ended in August, down from 520 for the year that ended in July.
As a percentage of overall housing closings, new home closings accounted for 7.8%. This is a decline 9.8% of closings a year earlier. Closings of new and existing homes slid year-over-year in August after also falling in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $350,075 per unit in August, up 26.6%from a year earlier. This bump follows a move from $280,173 per unit to $279,242 from July 2014 to July 2015.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In August 2015, the average mortgage size was $262,823, a 11.5% rise from a year earlier. Average mortgage size dropped 6.2% in July 2015 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 58.3% in August 2014 to 71.7% of closings in August 2015. Conversely, the share of new home closings belonging to attached units fell to 28.3% of closings from 41.7% of closings.
For all new homes sold, the average unit size slid 12.4% year-over-year to 1,867 square feet in August 2015. In July, the average size of new homes sold went from 2,126 square feet a year earlier to 1,994 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 7.7% of existing home closings, below 8.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 1.1% in August from 2.5% a year earlier and REO closings moved from 6.3% of existing home closings in August 2014 to 6.6% in August 2015.