Closings of new homes gained year-over-year in July in the Provo, UT market, but the market seemed to show signs of leveling out as the percentage grew was less than in June 2015. Closings increased 29.1% from a year earlier to 226. In comparison, new home closings in the same month last year saw a 56.2% rise year-over-year in June.
A total of 2,187 new homes were sold during the 12 months that ended in July, up from 2,136 for the year that ended in June.
As a percentage of overall housing closings, new home closings represented 18.4%. This is an increase on a percentage basis, as new home closings were 15.6% of total closings a year ago. For new and existing homes, closings increased year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
In July, there was a 7.9% bump year-over-year in the average price of newly sold homes, reaching $330,488 per unit. This gain is an improvement over the 6.9% bump in June year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In July 2015, the average mortgage size was $282,557, up 10.0% from a year earlier. In June 2015, average mortgage size on newly sold homes saw a 9.2% bump year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings rose from 67.4% of new closings in July 2014 to 81.0% of closings in July 2015. Conversely, the share of new home closings belonging to attached units declined to 19.0% of closings from 32.6% of closings.
For all new homes sold, the average unit size sank 15.5% year-over-year to 1,989 square feet in July 2015. In June, the average size of new homes sold went from 2,199 square feet a year earlier to 2,412 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 7.1% of existing closings, lower than 14.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.9% in July from 6.3% a year earlier while REO closings as a percentage of existing home closings dropped to 4.2% from 8.2% a year earlier.