In the Allentown, PA market, closings of new homes climbed year-over-year in January, snapping back from a decline in December 2015. Closings gained 2.7% from a year earlier to 38. This came after a 8.2% fall year-over-year in December.
A total of 623 new homes were sold during the 12 months that ended in January, up from 622 for the year that ended in December.
New home closings represented 5.6% of overall closings, unchanged from a year earlier. Following a fall in December year-over-year, closings of new and existing homes increased year-over-year in January.
Pricing and Mortgage Trends
In January, the average per-unit price of new homes slid by 6.0% year-over-year to $356,100. This drop compares to a 1.7% bump in December year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size slid 1.1% to $290,767 in January from a year earlier. Average mortgage size climbed 5.1% in December 2015 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. The share of new home closings belonging to single-family homes grew from 45.9% in January 2015 to 52.6% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings slid to 47.4% of closings from 54.1% of closings.
The average unit size of newly sold homes fell 15.7% year-over-year to 2,127 square feet in January 2016. The average size of newly sold homes moved from 2,422 square feet in December 2014 to 2,120 square feet in December 2015.
Foreclosures and real estate owned (REO) closings decreased in January from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings accounted for 34.8% of existing home closings, below 36.9% a year earlier. The percentage of existing home closings involving foreclosures dropped to 15.0% in January from 20.3% a year earlier while REO closings as a percentage of existing home closings gained to 19.7% from 16.6%.