New home closings sank year-over-year in October in the Philadelphia, PA market, and the percentage decline was more severe than September 2015, indicating the market may be worsening. Closings sank 22.8% from a year earlier to 434. This was after the housing market saw a 22.3% drop year-over-year in September.
A total of 4,560 new homes were sold during the 12 months that ended in October, down from 4,688 for the year that ended in September.
New home closings made up 6.8% of overall housing closings. A year ago, 7.5% of total closings were new home closings. Following a year-over-year increase in September, closings of new and existing homes slid year-over-year in October.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 8.4% surge year-over-year in October to $477,355 per unit. This boost compares to a 5.0% drop in September from a year earlier.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. Average mortgage size rose 6.4% to $353,277 in October from a year earlier. It went from $316,555 to $313,654 from September 2014 to September 2015.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have dipped. The share of new home closings belonging to attached units climbed from 47.0% of closings in October 2014 to 53.9% of closings in October 2015. Conversely, the share belonging to single-family homes slid to 46.1% of closings from 53.0% of closings.
There was a 9.7% bump year-over-year in the average unit size of newly sold homes to 2,770 square feet in October 2015. The lift was sharper than the hike in average price of newly sold homes, making the movement simliar to September 2015 when the average size jumped 8.4% to 2,381 square feet from a year earlier. In September, the average size of new homes sold went from 2,599 square feet a year earlier to 2,381 square feet.
Foreclosures and real estate owned (REO) closings decreased in October from a year earlier, but remained a burden on the market. Combined, foreclosures plus REO closings accounted for 26.8% of existing home closings, below 29.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 15.5% in October from 18.1% a year earlier and REO closings moved from 11.5% of existing home closings in October 2014 to 11.3% in October 2015.