In the Allentown, PA market in November, closings of new homes dropped year-over-year, and there were hints of worsening market conditions as the percentage decline was steeper than October 2015. Closings declined 25.9% from a year earlier to 40. This followed a 20.0% decline year-over-year in October.
A total of 616 new homes were sold during the 12 months that ended in November, down from 630 for the year that ended in October.
As a percentage of overall housing closings, new home closings represented 5.2%. This is a drop 6.5% of closings a year earlier. After rising year-over-year in October, closings of new and existing homes declined year-over-year in November.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $381,946 in November, up 8.4% from last year. This rise is smaller than the 21.9% bump in October year-over-year.
The average mortgage size on newly sold homes saw a rise year-over-year along with new home prices. In November 2015, average mortgage size gained 14.5% from a year earlier to $308,327. In October 2015, average mortgage size on newly sold homes saw a 33.1% hike year-over-year 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 climbed from 72.2% in November 2014 to 85.0% of closings in November 2015. Conversely, the share of new home closings belonging to attached units sank to 15.0% of closings from 27.8% of closings.
There was a 55.5% fall year-over-year in the average unit size of newly sold homes to 1,023 square feet in November 2015. For newly sold homes, an average size drop contrasting with an average price gain was also seen in October 2015 when the average size of newly sold homes dropped 16.9% to 1,851 square feet. The average size of newly sold homes moved from 2,228 square feet in October 2014 to 1,851 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to rise in November from a year earlier and remained a burden on the market. Combined, foreclosures plus REO closings represented 31.2% of existing home closings, above 29.3% a year earlier. The percentage of existing home closings involving foreclosures fell to 18.0% in November from 19.4% a year earlier while REO closings as a percentage of existing home closings rose to 13.2% from 9.9%.