New home closings slid year-over-year in June in the St. George, UT market, but there were suggestions that the market may be stabilizing with a percentage drop less steep than in May 2016. Closings slid 12.1% from a year earlier to 87. This came on the heels of a 19.2% fall year-over-year in May.
A total of 961 new homes were sold during the 12 months that ended in June, down from 973 for the year that ended in May.
Out of all housing closings, new home closings made up 15.8%. This is down from the 19.2% of closings a year earlier. Following a drop in May year-over-year, closings of new and existing homes increased year-over-year in June.
Pricing and Mortgage Trends
In June, there was a 4.5% lift year-over-year in the average price of newly sold homes, reaching $342,186 per unit. This hike is smaller than the 12.7% surge in May year-over-year.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. In June 2016, average mortgage size on new homes sold was $298,560, down 1.1% from a year earlier. Average mortgage size increased 9.9% in May 2016 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 92.9% of new home closings to 92.0% of closings while attached units have gone from 7.1% of closings to 8.0% of closings.
The average unit size of newly sold homes gained 22.5% year-over-year to 2,632 square feet in June 2016. The average size of newly sold homes moved from 2,438 square feet in May 2015 to 3,180 square feet in May 2016. An increase was also seen in May 2016 when the average size of new homes sold jumped 30.4% to 3,180 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 5.0% of existing home closings, down from 7.9% a year earlier. The percentage of existing home closings involving foreclosures went from 2.9% in June 2015 to 1.9% in June 2016 and REO closings as a percentage of existing home closings slid to 3.0% from 5.0% a year earlier.