New home closings in the Reading, PA market climbed year-over-year in August, rebounding from a year-over-year decline in July 2015. New home closings moved from 18 a year earlier to 20 after the figure moved from 20 in July 2014 to 13 in July 2015.
A total of 134 new homes were sold during the 12 months that ended in August, up from 132 for the year that ended in July.
New home closings accounted for 3.5% of overall housing closings. A year earlier, new home closings accounted for 3.2% of total closings. For new and existing homes, closings increased year-over-year in August after also increasing in July year-over-year.
Pricing and Mortgage Trends
The average value of newly sold homes moved to $265,685 in August 2015 from $264,676 in August 2014. This followed a move from $278,139 per unit in July 2014 to $280,753 in July 2015.
Average mortgage size on new homes sank year-over-year in contrast to new home prices. In August 2015, average mortgage size fell 5.4% from a year earlier to $211,801. Average mortgage size on new homes went from $211,951 in July 2014 to $223,493 in July 2015.
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 grew from 94.4% in August 2014 to all of closings in August 2015. At the same time, the share of new home closings belonging to attached units dropped to no part of closings from 5.6% of closings.
The average unit size of newly sold homes rose 41.2% year-over-year to 3,736 square feet in August 2015. The average size of newly sold homes moved from 2,251 square feet in July 2014 to 4,162 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 23.6% of closings, below 29.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 12.3% in August from 17.2% a year earlier while REO closings as a percentage of existing home closings fell to 11.4% from 12.7% a year earlier.