In the Provo, UT market in May, closings of new homes jumped year-over-year, an upward turn from a decline in April 2016. New home closings saw a boost of 14.8% from the year earlier to 233. This came after a 24.4% decline year-over-year in April.
A total of 2,611 new homes were sold during the 12 months that ended in May, up from 2,581 for the year that ended in April.
New home closings accounted for 18.6% of overall housing closings. This is an increase on a percentage basis, as new home closings were 16.1% of total closings a year ago. Following a year-over-year decline in April, closings of new and existing homes also dropped year-over-year in May.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 7.6% hike year-over-year in May to $336,237 per unit. This gain is smaller than the 9.3% bump in April year-over-year.
Average mortgage size on new homes rose year-over-year along with new home prices. Average mortgage size grew 6.7% to $285,066 in May from a year earlier. In April 2016, average mortgage size gained 10.4% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 68.5% in May 2015 to 78.5% of closings in May 2016. At the same time, the share of new home closings belonging to attached units sank to 21.5% of closings from 31.5% of closings.
For all new homes sold, the average unit size jumped 9.1% year-over-year to 2,193 square feet in May 2016. In April, the average size of new homes sold went from 2,136 square feet a year earlier to 2,031 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in May, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 4.5% of existing closings, lower than 7.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.6% in May from 2.8% a year earlier while REO closings as a percentage of existing home closings declined to 2.9% from 4.2% a year earlier.