The State College, PA market saw a drop in new home closings year-over-year in April, and the decline was by a larger percentage than the March 2016. New home closings moved from 17 a year earlier to 1 after the figure moved from 6 in March 2015 to 4 in March 2016.
A total of 103 new homes were sold during the 12 months that ended in April, down from 119 for the year that ended in March.
On a percentage basis, new home closings as a part of total closings decreased to 0.8% from 11.0% a year earlier. Following a year-over-year increase in March, closings of new and existing homes dropped year-over-year in April.
Pricing and Mortgage Trends
The average value of newly sold homes in April 2016 was $97,222, down from last year's $331,847. This was on the heels of a 29.0% fall in March from a year earlier.
There was a decline in average mortgage size on new homes, going from $254,226 last year to $99,698 in April 2016. Average mortgage size on new homes went from $270,364 in March 2015 to $213,888 in March 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 April 2016.
The average unit size of newly sold homes fell from 2,189 square feet a year earlier to 1,364 square feet.
Foreclosures and real estate owned (REO) closings increased in April from a year earlier and did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 9.7% of existing home closings, higher than 8.8% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.6% in April from 3.6% a year earlier while REO closings as a percentage of existing home closings sank to 4.0% from 5.1% a year earlier.