The Salt Lake City, UT market saw an increase in closings of new homes in May year-over-year, moving upward off a fall in April 2016. New home closings saw a boost of 3.7% from the year earlier to 250. This was after the housing market saw a 6.8% decline year-over-year in April.
A total of 3,310 new homes were sold during the 12 months that ended in May, up from 3,301 for the year that ended in April.
As a percentage of overall housing closings, new home closings accounted for 9.7% of overall housing closings. A year ago, new home closings represented 9.6%. Closings of new and existing homes rose year-over-year in May following a decline in April year-over-year.
Pricing and Mortgage Trends
In May, there was no change year-over-year in the average price of new homes as it remained at $339,302 per unit. This comes after a 2.1% hike in April year-over-year.
Average mortgage size on new homes went from $286,301 in May 2015 to $287,982 in May 2016. Average mortgage size increased 2.2% in April 2016 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 61.8% of new home closings to 62.0% of closings while attached units have gone from 38.2% of closings to 38.0% of closings.
The average unit size of newly sold homes slid 11.8% year-over-year to 1,819 square feet in May 2016. In April, the average size of new homes sold went from 2,139 square feet a year earlier to 2,234 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 5.6% of closings, below 8.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 2.5% in May from 3.9% a year earlier while REO closings as a percentage of existing home closings sank to 3.1% from 4.2% a year earlier.