There was a rise in closings of new homes in the Allentown, PA market in April year-over-year, shifting up after a fall in March 2016. There was a 16.3% climb in new home closings from a year earlier. This came after a 23.1% decline year-over-year in March.
A total of 624 new homes were sold during the 12 months that ended in April, up from 617 for the year that ended in March.
Out of all housing closings, new home closings made up 5.8%. A year ago, 5.4% of total closings were new home closings. Closings of new and existing homes gained year-over-year in April following a drop in March year-over-year.
Pricing and Mortgage Trends
The average price of new homes declined by 9.9% year-over-year to $342,588 per unit in April. This fall is larger than the 7.7% decline in March from a year earlier.
The average mortgage size on new homes moved north year-over-year in contrast to new home prices. In April 2016, the average mortgage size was $296,085, up 4.2% from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 8.1% fall from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings climbed from 58.1% of new closings in April 2015 to 62.0% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings declined to 38.0% of closings from 41.9% of closings.
The average unit size of newly sold homes slid 24.3% year-over-year to 1,949 square feet in April 2016. A decline was also seen in March 2016 when the average size of new homes sold slid 12.8% to 2,149 square feet. In March, the average size of new homes sold went from 2,464 square feet a year earlier to 2,149 square feet.
Foreclosures and real estate owned (REO) closings decreased in April from a year earlier, but remained a drag on the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 25.3% of closings, below 28.3% a year earlier. The percentage of existing home closings involving foreclosures dropped to 10.7% in April from 13.2% a year earlier and REO closings moved from 15.1% of existing home closings in April 2015 to 14.7% in April 2016.