Closings of new homes slid year-over-year in July in the Lancaster, PA market, sliding downhill after showling little movement in June from the year earlier. Closings declined 30.8% from a year earlier to 45. Closings were steady in June from the year earlier.
A total of 549 new homes were sold during the 12 months that ended in July, down from 569 for the year that ended in June.
New home closings accounted for 6.3% of overall housing closings. This is down from the a year earlier when new home closings made up 8.7% of total closings. Following a year-over-year rise in June, closings of new and existing homes slid year-over-year in July.
Pricing and Mortgage Trends
The average price of new homes was $293,636 per unit in July, up 5.2%from a year earlier. This gain compares to a 6.6% decline in June from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. It climbed to $246,403 in July, a 11.9% hike. In June 2016, average mortgage size on newly sold homes saw a 7.8% bump year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings gained from 40.0% of all closings in July 2015 to 48.9% of closings in July 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 51.1% of closings from 60.0% of closings.
There was a 25.4% fall year-over-year in the average unit size of newly sold homes to 1,604 square feet in July 2016. In June, the average size of new homes sold went from 2,348 square feet a year earlier to 2,067 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 11.8% of existing closings, lower than 20.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.7% in July from 14.3% a year earlier and REO closings moved from 6.6% of existing home closings in July 2015 to 6.1% in July 2016.