In the Salt Lake City, UT market in January, new home closings jumped year-over-year, but the percentage gain was less pronounced than December 2015, indicating the market may be stabilizing. Closings gained 16.5% from a year earlier to 198. This came after a 40.2% boost year-over-year in December.
A total of 3,187 new homes were sold during the 12 months that ended in January, up from 3,159 for the year that ended in December.
New home closings represented 12.4% of overall housing closings. This is a rise from 10.9% of closings a year earlier. Following a year-over-year increase in December, closings of new and existing homes also increased year-over-year in January.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year in January to $366,081 per unit, a rise of 6.8%. This surge compares to a period of little change in December from a year earlier.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. In January 2016, average mortgage size grew 6.7% from a year earlier to $310,171. In December 2015, average mortgage size on newly sold homes saw a 1.6% gain year-over-year 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. Attached unit closings grew from 26.5% of all closings in January 2015 to 34.3% of closings in January 2016. Conversely, the share belonging to single-family homes sank to 65.7% of closings from 73.5% of closings.
The average unit size of newly sold homes fell 15.8% year-over-year to 1,812 square feet in January 2016. The average size of newly sold homes moved from 2,235 square feet in December 2014 to 1,902 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 12.2% of existing home closings, below 16.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.7% in January from 8.7% a year earlier while REO closings as a percentage of existing home closings sank to 6.5% from 7.7% a year earlier.