In the Ogden, UT market in February, new home closings sank year-over-year, and there were signals of weakening market conditions with a percentage drop steeper than that of January 2016. There was a 37.9% decline in new home closings from a year earlier. This came after a 9.8% fall year-over-year in January.
A total of 1,482 new homes were sold during the 12 months that ended in February, down from 1,521 for the year that ended in January.
Out of all housing closings, new home closings represented 8.4%. This is a decline 12.0% of closings a year earlier. After rising year-over-year in January, closings of new and existing homes slid year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes fell by 5.7% year-over-year to $310,655 per unit in February. This drop follows a move from $334,005 per unit in January 2015 to $332,478 in January 2016.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. Average mortgage size dropped by 15.9% from a year earlier, settling at $267,503 in February. In January 2016, average mortgage size slid 6.7% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 91.3% of new home closings to 92.2% of closings while attached units have gone from 8.7% of closings to 7.8% of closings.
There was a 1.5% decline year-over-year in the average unit size of newly sold homes to 2,154 square feet in February 2016. In January, the average size of new homes sold went from 2,253 square feet a year earlier to 1,921 square feet.
Foreclosures and real estate owned (REO) closings increased in February from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 15.7% of existing home closings, up from 15.4% a year earlier. The percentage of existing home closings involving foreclosures went from 6.5% in February 2015 to 7.2% in February 2016 and REO closings moved from 8.9% of existing home closings in February 2015 to 8.5% in February 2016.