Closings of new homes in the St. George, UT market gained year-over-year in April, and the market seemed to be improving as the percentage surge was larger than that of March 2016. New home closings saw a rise of 27.7% from the year earlier to 83. This was after the housing market saw a 19.0% climb 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.
New home closings represented 18.4% of overall housing closings. This is an increase on a percentage basis, as new home closings were 14.0% of total closings a year ago. Following a year-over-year decline in March, closings of new and existing homes also declined year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes fell by 20.1% year-over-year to $320,484 per unit in April. This drop is larger than the 8.1% decline in March from a year earlier.
The average mortgage size on newly sold homes fell year-over-year in contrast to the average price of new homes. In April 2016, average mortgage size declined 23.0% from a year earlier to $278,026. In March 2016, average mortgage size slid 9.5% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 7.7% of closings in April 2015 to 13.3% of closings in April 2016. Conversely, the share belonging to single-family homes fell to 86.7% of closings from 92.3% of closings.
For all new homes sold, the average unit size grew 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 rise was opposite the price decline, a pattern also seen in March 2016 when the average size of newly sold homes increased 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. Out of all existing home closings, foreclosures combined with REO closings made up 6.3% of closings, below 10.5% a year earlier. The percentage of existing home closings involving foreclosures slid 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.