Closings of new homes declined year-over-year in May in the Ogden, UT market, but the percentage drop was an improvement from April 2016, suggesting the market may be evening out. There was a 8.3% drop in new home closings from a year earlier. This was after the housing market saw a 30.0% fall year-over-year in April.
A total of 1,487 new homes were sold during the 12 months that ended in May, down from 1,496 for the year that ended in April.
New home closings made up 7.2% of overall housing closings. This is a decline 8.8% of closings a year earlier. Following a fall in April year-over-year, closings of new and existing homes gained year-over-year in May.
Pricing and Mortgage Trends
In May, the average price for new home closings was $335,549, a 1.8% decline from last year. This decline compares to a 8.4% gain in April year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In May 2016, there was a 13.9% decline in the average mortgage size on new homes to $287,484. Average mortgage size declined 6.9% in April 2016 from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 86.1% of new home closings to 85.9% of closings while attached units have gone from 13.9% of closings to 14.1% of closings.
For all new homes sold, the average unit size dropped 8.8% year-over-year to 2,153 square feet in May 2016. In April, the average size of new homes sold went from 2,172 square feet a year earlier to 2,444 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 6.9% of existing home closings, below 11.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 3.0% in May from 4.8% a year earlier while REO closings as a percentage of existing home closings slid to 3.9% from 6.4% a year earlier.