There was an increase in closings of new homes in the Provo, UT market in September year-over-year, and there were signals that the market may be improving as the percentage boost was better than August 2015. Closings rose 78.3% from a year earlier to 246. This followed a 35.2% jump year-over-year in August.
A total of 2,448 new homes were sold during the 12 months that ended in September, up from 2,340 for the year that ended in August.
Out of all housing closings, new home closings made up 19.4%. This is an increase on a percentage basis, as new home closings were 15.3% of total closings a year ago. For new and existing homes, closings grew year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, there was a 6.0% rise year-over-year in the average price of newly sold homes, reaching $337,161 per unit. This lift is an improvement over the 1.8% hike in August year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. In September 2015, the average mortgage size was $284,406, up 5.6% from a year earlier. In August 2015, average mortgage size on newly sold homes saw a 3.7% bump year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes increased from 76.1% in September 2014 to 80.5% of closings in September 2015. Conversely, the share of new home closings belonging to attached units fell to 19.5% of closings from 23.9% of closings.
There was a move in the average unit size of newly sold homes from 2,317 square feet in September 2014 to 2,300 square feet in September 2015. In August, the average size of new homes sold went from 2,162 square feet a year earlier to 2,304 square feet. In August 2015, the average size of newly sold homes climbed 6.6% from the year earlier.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 7.2% of existing home closings, down from 10.2% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.8% in September from 3.9% a year earlier while REO closings as a percentage of existing home closings sank to 4.4% from 6.3% a year earlier.