In the Salt Lake City, UT market, closings of new homes slid year-over-year in April, moving downward after a bump in March 2016. New home closings saw a drop of 7.5% from the year earlier to 245. This followed a 39.2% jump year-over-year in March.
A total of 3,293 new homes were sold during the 12 months that ended in April, down from 3,313 for the year that ended in March.
As a percentage of overall housing closings, new home closings accounted for 10.9% of overall housing closings. A year earlier, new home closings made up 10.3% of total closings. Following a year-over-year decline in March, closings of new and existing homes also fell year-over-year in April.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 1.8% in April to $350,322 per unit. This bump is smaller than the 5.0% gain in March year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. It gained to $297,853 in April, a 1.8% hike. Average mortgage size gained 4.6% in March 2016 from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings jumped from 64.9% of new closings in April 2015 to 70.2% of closings in April 2016. Conversely, the share of new home closings belonging to attached units declined to 29.8% of closings from 35.1% of closings.
For all new homes sold, the average unit size grew 4.4% year-over-year to 2,234 square feet in April 2016. In March, the average size of new homes sold went from 2,155 square feet a year earlier to 1,950 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 6.9% of existing home closings, below 11.0% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.7% in April from 5.4% a year earlier while REO closings as a percentage of existing home closings dropped to 4.2% from 5.7% a year earlier.