In July, closings of new homes increased year-over-year in the Salt Lake City, UT market, bouncing back from a drop in June 2015. There was a 9.8% hike in new home closings from a year earlier. This followed a 9.4% fall year-over-year in June.
A total of 2,561 new homes were sold during the 12 months that ended in July, up from 2,539 for the year that ended in June.
Out of all housing closings, new home closings made up 8.9%. A year earlier, new home closings made up 9.8% of total closings. Closings of new and existing homes jumped year-over-year in July after also rising in June year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in July 2015 was $323,583, a move from $325,936 a year earlier. This came after a 2.2% surge in June year-over-year.
For newly sold homes, average mortgage size moved from $278,359 in July 2014 to $276,401 in July 2015. In June 2015, average mortgage size on newly sold homes saw a 2.3% rise year-over-year from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units rose from 32.6% of closings in July 2014 to 35.8% of closings in July 2015. At the same time, the share belonging to single-family homes dropped to 64.2% of closings from 67.4% of closings.
The average unit size of newly sold homes slid 3.3% year-over-year to 1,978 square feet in July 2015. In June, the average size of new homes sold went from 2,122 square feet a year earlier to 2,082 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 9.3% of existing closings, lower than 14.1% a year earlier. The percentage of existing home closings involving foreclosures sank to 4.0% in July from 6.4% a year earlier while REO closings as a percentage of existing home closings dropped to 5.3% from 7.7% a year earlier.