In February, closings of new homes grew year-over-year in the St. George, UT market, but the increased on a percentage basis less sharlpy than January 2016, showing signs of market stabilization. There was a 42.6% boost in new home closings from a year earlier. This came on the heels of a 45.2% rise year-over-year in January.
A total of 915 new homes were sold during the 12 months that ended in February, up from 895 for the year that ended in January.
As a percentage of overall housing closings, new home closings made up 20.1%. This is an increase on a percentage basis, as new home closings were 13.7% of total closings a year ago. Closings of new and existing homes sank year-over-year in February after also falling in January year-over-year.
Pricing and Mortgage Trends
Average value of new homes sold in February was $316,581 per unit, down 7.6% from a year earlier. This fall compares to a 5.9% bump in January year-over-year.
For newly sold homes, the average mortgage size saw a decline year-over-year in contrast to new home prices. The average mortgage size slid to $283,493 in February, marking a 3.1% fall compared with last year. In January 2016, average mortgage size grew 6.5% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units climbed from 6.4% of closings in February 2015 to 10.4% of closings in February 2016. Meanwhile, single-family home closings as a percentage of all new home closings fell to 89.6% of closings from 93.6% of closings.
For all new homes sold, the average unit size rose 16.4% year-over-year to 2,277 square feet in February 2016. The average size of newly sold homes moved from 2,195 square feet in January 2015 to 2,577 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in February, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 9.4% of existing closings, lower than 13.5% a year earlier. The percentage of existing home closings involving foreclosures rose to 5.2% in February from 4.0% a year earlier while REO closings as a percentage of existing home closings sank to 4.1% from 9.4% a year earlier.