In the York, PA market in July, new home closings slid year-over-year, and there were signs of weakening market conditions with a percentage drop more severe than that of June 2012. Closings sank 33.3% from a year earlier to 28, relative to a 20.0% drop in June from the year earlier.
A total of 333 new homes were sold during the 12 months that ended in July, down from 347 for the year that ended in June.
Out of all housing closings, new home closings accounted for 6.4%. This is less than the 9.1% of closings a year earlier. For new and existing homes, closings fell in July after also declining in June year-over-year.
Pricing and Mortgage Trends
In July, the average value of new homes saw a 17.1% rise year-over-year as it grew to $234,434 per unit. This bump is better than the 4.6% rise in June year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size increased 9.5% to $209,714 in July from a year earlier. Average mortgage size grew 12.0% in June 2012 from a year earlier. The overall percentage of sale price that was being financed dipped 6.2 percentage points year-over-year to 89.5% in July 2012. This came after a 6.2 percentage point rise in June from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units increased from 9.5% of closings in July 2011 to 21.4% of closings in July 2012. Conversely, the share belonging to single-family homes fell to 78.6% of closings from 90.5% of closings.
For all new homes sold, the average unit size rose 8.2% year-over-year to 1,682 square feet in July 2012. The average size of newly sold homes moved from 1,727 square feet in June 2011 to 1,367 square feet in June 2012.
Foreclosures and real estate owned (REO) closings did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 16.3% of existing home closings. They represented 17.4% in July 2011. The percentage of existing home closings involving foreclosures stayed at 1.7% of closings in July from a year earlier while REO closings as a percentage of existing home closings declined to 14.6% from 15.7% a year earlier.
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