New home closings rose year-over-year in April in the St. George, UT market, and there were signals that the market may be gaining momentum as the percentage hike proved better than March 2016. New home closings saw a 27.7% jump from a year earlier to 83. This came after a 19.0% rise year-over-year in March.
A total of 981 new homes were sold during the 12 months that ended in April, up from 963 for the year that ended in March.
Of 450 total closings, 83 were of new homes. This marks a rise from 14.0% of total closings a year earlier. For new and existing homes, closings declined in April after also declining in March year-over-year.
Pricing and Mortgage Trends
The average price of newly sold homes slid 20.1% year-over-year in April to $320,484 per unit. This fall is larger than the 8.1% drop in March from a year earlier.
For newly sold homes, the average mortgage size dropped year-over-year in contrast to average price of new homes. The average mortgage size fell to $278,026 in April, marking a 23.0% decline compared with last year. In March 2016, average mortgage size dropped 9.5% 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 rose from 7.7% of all closings in April 2015 to 13.3% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings declined to 86.7% of closings from 92.3% of closings.
For all new homes sold, the average unit size rose 23.1% year-over-year to 2,693 square feet in April 2016. The average size of newly sold homes moved from 2,068 square feet in March 2015 to 2,190 square feet in March 2016. This surge was opposite the price decline, a pattern also seen in March 2016 when the average size of newly sold homes climbed 5.9% to 2,190 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 6.3% of existing home closings, below 10.5% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.9% in April from 5.2% a year earlier and REO closings moved from 5.2% of existing home closings in April 2015 to 4.4% in April 2016.