In the Provo, UT market, closings of new homes slid year-over-year in July, and there were suggestions of weakening market conditions with a percentage fall steeper than that of June 2016. There was a 5.5% drop in new home closings from a year earlier. This followed a 2.3% fall year-over-year in June.
A total of 2,614 new homes were sold during the 12 months that ended in July, down from 2,628 for the year that ended in June.
As a percentage of overall housing closings, new home closings accounted for 18.1%. This is down from the a year earlier when new home closings accounted for 20.0% of total closings. After dropping in June from a year earlier, closings of new and existing homes grew year-over-year in July.
Pricing and Mortgage Trends
For newly sold homes, the average price increased 1.9% year-over-year in July to $332,052 per unit. This boost is smaller than the 4.1% surge in June year-over-year.
In July 2016, average mortgage size on new homes went from $280,719 in July 2015 to $279,880 in July 2016. In June 2016, average mortgage size climbed 1.8% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have climbed from last year while closings of single-family homes have slumped. The share of new home closings belonging to attached units gained from 20.2% of closings in July 2015 to 25.1% of closings in July 2016. At the same time, the share belonging to single-family homes dropped to 74.9% of closings from 79.8% of closings.
There was a 4.5% drop year-over-year in the average unit size of newly sold homes to 2,071 square feet in July 2016. In June, the average size of new homes sold went from 2,176 square feet a year earlier to 2,314 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 6.6% of existing closings, lower than 7.1% a year earlier. The percentage of existing home closings involving foreclosures went from 3.1% in July 2015 to 2.6% in July 2016 and REO closings as a percentage of existing home closings stayed level at 4.1%.