In the Ogden, UT market in June, closings of new homes grew year-over-year, and there were signs that the market may be improving as the percentage hike was better than May 2016. New home closings saw a boost of 9.3% from the year earlier to 153. This followed a 9.2% rise year-over-year in May.
A total of 1,548 new homes were sold during the 12 months that ended in June, up from 1,535 for the year that ended in May.
Of the total number of closings, new home closings made up 10.6%. A year ago, new home closings made up 9.8%. After rising in May from a year earlier, closings of new and existing homes stayed steady in June.
Pricing and Mortgage Trends
Average price of newly sold homes had a 1.6% gain year-over-year to $332,062 per unit in June. This surge compares to a period of little change in May from a year earlier.
The average mortgage size on newly sold homes saw a drop year-over-year in contrast to new home prices. It fell to $286,504 in June, a 8.1% decline. In May 2016, average mortgage size declined 12.2% from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units rose from 10.0% of closings in June 2015 to 12.4% of closings in June 2016. At the same time, the share belonging to single-family homes declined to 87.6% of closings from 90.0% of closings.
For all new homes sold, the average unit size slid 15.3% year-over-year to 1,971 square feet in June 2016. In May, the average size of new homes sold went from 2,378 square feet a year earlier to 2,054 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 6.1% of existing home closings, below 9.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.2% in June from 4.3% a year earlier while REO closings as a percentage of existing home closings declined to 3.9% from 5.6% a year earlier.