There was a rise in closings of new homes in the Provo, UT market in August year-over-year, and there were signs of strengthening market conditions as the percentage rise was sharper than July 2015. Closings gained 35.9% from a year earlier to 261. This came after a 29.5% boost year-over-year in July.
A total of 2,314 new homes were sold during the 12 months that ended in August, up from 2,245 for the year that ended in July.
As a percentage of overall housing closings, new home closings made up 20.5%. This marks a rise from 17.9% of total closings a year earlier. Closings of new and existing homes climbed year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
In August, there was a 2.0% gain year-over-year in the average price of newly sold homes, reaching $325,153 per unit. This rise is smaller than the 7.9% bump in July year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. The average mortgage size saw a 3.9% surge year-over-year to $276,596 in August. In July 2015, average mortgage size on newly sold homes saw a 10.1% surge year-over-year 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 69.8% of new home closings to 70.1% of closings while attached units have gone from 30.2% of closings to 29.9% of closings.
The average unit size of newly sold homes gained 6.8% year-over-year to 2,304 square feet in August 2015. In July, the average size of new homes sold went from 2,329 square feet a year earlier to 2,217 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 5.1% of existing home closings, below 10.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 1.6% in August from 5.1% a year earlier while REO closings as a percentage of existing home closings dropped to 3.6% from 5.6% a year earlier.