New home closings sank year-over-year in July in the Salt Lake City, UT market, swinging downward off a year-over-year rise in June 2016. Closings slid 1.9% from a year earlier to 259. This was after the housing market saw a 19.7% jump year-over-year in June.
A total of 3,400 new homes were sold during the 12 months that ended in July, down from 3,405 for the year that ended in June.
Out of all housing closings, new home closings represented 10.2%. As a part of the whole, new home closings were 9.5% a year earlier. Following a period of little movement in June from a year earlier, closings of new and existing homes declined year-over-year in July.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 15.8% in July to $373,614 per unit. This lift is higher than the 7.3% gain in June year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In July 2016, there was a 14.2% lift in the average mortgage size, reaching $314,281. In June 2016, average mortgage size climbed 5.8% from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 62.5% in July 2015 to 73.0% of closings in July 2016. Conversely, the share of new home closings belonging to attached units slid to 27.0% of closings from 37.5% of closings.
For all new homes sold, the average unit size declined 5.2% year-over-year to 2,007 square feet in July 2016. For newly sold homes, an average size drop contrasting with an average price gain was also seen in June 2016 when the average size of newly sold homes dropped 9.6% to 1,957 square feet. The average size of newly sold homes moved from 2,165 square feet in June 2015 to 1,957 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 5.8% of existing closings, lower than 9.2% a year earlier. The percentage of existing home closings involving foreclosures went from 3.9% in July 2015 to 3.0% in July 2016 and REO closings as a percentage of existing home closings fell to 2.8% from 5.4% a year earlier.