In the State College, PA market, closings of new homes declined year-over-year in May, but the decline was less than the year-over-year decline in April. New home closings moved from 13 a year earlier to 5 after the figure moved from 17 in April 2015 to 1 in April 2016.
A total of 95 new homes were sold during the 12 months that ended in May, down from 103 for the year that ended in April.
On a percentage basis, new home closings as a part of total closings decreased to 2.8% from 6.6% a year earlier. Closings of new and existing homes declined year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
The average new home price was $268,732, down from $297,261 a year earlier. This followed a 70.7% decline in April from a year earlier.
The average mortgage size went down to $208,488 from $244,768 a year earlier. Average mortgage size on new homes went from $254,226 in April 2015 to $99,698 in April 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in May 2016.
The average unit size of newly sold homes rose from 2,016 square feet a year earlier to 2,098 square feet.
Foreclosures and real estate owned (REO) closings rose in May from a year earlier and did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 10.4% of existing home closings, above 4.9% a year earlier. The percentage of existing home closings involving foreclosures rose to 4.6% in May from 1.1% a year earlier while REO closings as a percentage of existing home closings gained to 5.8% from 3.8%.