Closings of new homes fell year-over-year in June in the St. George, UT market, but the percentage drop, which was less steep than in May 2016, seemed to be hinting at market improvement. Closings slid 12.1% from a year earlier to 87. In comparison, new home closings in the same month last year saw 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 a year earlier when new home closings represented 19.2% of total closings. Closings of new and existing homes gained year-over-year in June following a fall in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 4.5% in June to $342,186 per unit. This bump is smaller than the 12.7% boost in May year-over-year.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. It dropped 1.1% in June from a year earlier, reaching $298,560. In May 2016, average mortgage size on newly sold homes saw a 9.9% lift 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 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.
For all new homes sold, the average unit size gained 22.5% year-over-year to 2,632 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size climbed 30.4% to 3,180 square feet. The average size of newly sold homes moved from 2,438 square feet in May 2015 to 3,180 square feet in May 2016.
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. Out of all existing home closings, foreclosures combined with REO closings made up 5.0% of closings, below 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 fell to 3.0% from 5.0% a year earlier.