The Lancaster, PA market saw a drop in new home closings year-over-year in September, but the percentage drop was less than that of August 2015, hinting that the market may be strengthening. Closings fell 7.4% from a year earlier to 50. This was after the housing market saw a 20.0% decline year-over-year in August.
A total of 507 new homes were sold during the 12 months that ended in September, down from 511 for the year that ended in August.
New home closings represented 7.5% of overall housing closings. This is down from the 9.0% of closings a year earlier. For new and existing homes, closings jumped year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, there was a 17.0% gain year-over-year in the average price of newly sold homes, reaching $311,909 per unit. This rise is smaller than the 26.8% hike in August year-over-year.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. It rose to $240,310 in September, a 5.0% surge. Average mortgage size rose 11.2% in August 2015 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes grew from 57.4% in September 2014 to 82.0% of closings in September 2015. Conversely, the share of new home closings belonging to attached units fell to 18.0% of closings from 42.6% of closings.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 18.8% of closings, below 24.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 13.2% in September from 18.0% a year earlier and REO closings moved from 6.4% of existing home closings in September 2014 to 5.6% in September 2015.