In the Provo, UT market in December, new home closings rose year-over-year, and there were suggestions of strengthening market conditions as the percentage bump was sharper than November 2015. Closings rose 18.9% from a year earlier to 220. This followed a 2.3% jump year-over-year in November.
A total of 2,535 new homes were sold during the 12 months that ended in December, up from 2,500 for the year that ended in November.
Out of all housing closings, new home closings represented 22.9%. This is better than the 21.7% of closings a year earlier. Closings of new and existing homes jumped year-over-year in December following a decline in November year-over-year.
Pricing and Mortgage Trends
In December, there was a 9.6% lift year-over-year in the average price of newly sold homes, reaching $347,268 per unit. This bump is higher than the 7.2% boost in November year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In December 2015, the average mortgage size was $296,556, up 11.5% from a year earlier. In November 2015, average mortgage size on newly sold homes saw a 28.2% gain year-over-year 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. Single-family home closings gained from 73.0% of new closings in December 2014 to 80.0% of closings in December 2015. At the same time, the share of new home closings belonging to attached units slid to 20.0% of closings from 27.0% of closings.
There was a move in the average unit size of newly sold homes from 2,317 square feet in December 2014 to 2,296 square feet in December 2015. In November, the average size of new homes sold went from 2,008 square feet a year earlier to 2,388 square feet. In November 2015, the average size of newly sold homes jumped 18.9% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in December, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 7.8% of existing home closings, down from 14.6% a year earlier. The percentage of existing home closings involving foreclosures went from 4.4% in December 2014 to 3.4% in December 2015 and REO closings as a percentage of existing home closings sank to 4.4% from 10.2% a year earlier.