New home closings in the Provo, UT market jumped year-over-year in September, and the percentage bump was sharper than August 2015, hinting that the market may be strengthening. New home closings saw a jump of 78.3% from the year earlier to 246. This came on the heels of a 35.2% climb 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.
Of 1,271 total closings, 246 were of new homes. This marks a rise from 15.3% of total closings a year earlier. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
In September, there was a 6.0% lift year-over-year in the average price of newly sold homes, reaching $337,161 per unit. This bump is an improvement over the 1.8% surge in August year-over-year.
The average mortgage size on newly sold homes jumped year-over-year along with the average price of new homes. It rose to $284,406 in September, a 5.6% boost. In August 2015, average mortgage size increased 3.7% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings grew from 76.1% of new closings in September 2014 to 80.5% of closings in September 2015. At the same time, the share of new home closings belonging to attached units dropped to 19.5% of closings from 23.9% of closings.
The average unit size of newly sold homes went from 2,317 square feet in September 2014 to 2,300 square feet in September 2015. In August 2015, the average size of newly sold homes rose 6.6% from the year earlier. In August, the average size of new homes sold went from 2,162 square feet a year earlier to 2,304 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, represented 7.2% of existing closings, lower than 10.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.8% in September from 3.9% a year earlier while REO closings as a percentage of existing home closings slid to 4.4% from 6.3% a year earlier.