New home closings in the Allentown, PA market were unchanged year-over-year in February, leveling out after a year-over-year rise in January. Closings were unchanged from last year at 40. New home closings gained 7.9%in January year-over-year.
A total of 632 new homes were sold during the 12 months that ended in February, equal to the number of new homes sold for the year that ended in January.
New home closings represented 6.2% of overall housing closings. New home closings were 6.3% of overall closings last year. Following a year-over-year increase in January, closings of new and existing homes also rose year-over-year in February.
Pricing and Mortgage Trends
Average value of new homes sold in February was $340,897 per unit, down 3.1% from a year earlier. This fall is a drop off from the 8.4% drop in January from a year earlier.
The average mortgage size on newly sold homes sank year-over-year in contrast to the average price of new homes. The average mortgage size declined to $242,308 in February, marking a 11.3% fall compared with last year. In January 2016, average mortgage size fell 4.8% 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 30.0% of closings in February 2015 to 55.0% of closings in February 2016. Meanwhile, single-family home closings as a percentage of all new home closings sank to 45.0% of closings from 70.0% of closings.
For all new homes sold, the average unit size slid 11.8% year-over-year to 2,230 square feet in February 2016. A decrease in both the average size and price of newly sold homes was also seen in January 2016 when the average size increased 22.0% to 1,930 square feet. The average size of newly sold homes moved from 2,475 square feet in January 2015 to 1,930 square feet in January 2016.
Foreclosures and real estate owned (REO) closings declined in February from a year earlier, but remained a burden on the market. Foreclosures and REO closings, taken together, represented 38.4% of existing closings, lower than 40.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 16.0% in February from 22.1% a year earlier while REO closings as a percentage of existing home closings climbed to 22.4% from 18.5%.