In the Philadelphia, PA market in August, new home closings dropped year-over-year, but compared with July 2015, the percentage drop was less steep, hinting the market may be strengthening. New home closings saw a 5.5% decline from a year earlier to 409. In comparison, new home closings in the same month last year saw a 12.6% decline year-over-year in July.
A total of 4,747 new homes were sold during the 12 months that ended in August, down from 4,771 for the year that ended in July.
Of the total number of closings, new home closings made up 5.0%. New home closings were 5.8% of overall closings last year. Closings of new and existing homes increased year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in August to $426,707 per unit, a rise of 2.3%. This bump compares to a 7.4% drop in July from a year earlier.
For newly sold homes, the average mortgage size fell year-over-year in contrast to average price of new homes. It dropped to $328,900 in August, a 1.2% drop. In July 2015, average mortgage size sank 7.6% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units grew from 45.0% of closings in August 2014 to 51.6% of closings in August 2015. Conversely, the share belonging to single-family homes slid to 48.4% of closings from 55.0% of closings.
For all new homes sold, the average unit size dropped 3.0% year-over-year to 2,594 square feet in August 2015. In July, the average size of new homes sold went from 2,568 square feet a year earlier to 1,975 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 22.3% of existing home closings, down from 23.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 12.3% in August from 13.6% a year earlier and REO closings moved from 9.6% of existing home closings in August 2014 to 10.0% in August 2015.