In the Salt Lake City, UT market in June, closings of new homes jumped year-over-year, and the market showed signs of strengthening as the percentage rise turned out sharper than May 2016. Closings gained 14.6% from a year earlier to 274. In comparison, new home closings in the same month last year saw a 8.6% rise year-over-year in May.
A total of 3,385 new homes were sold during the 12 months that ended in June, up from 3,350 for the year that ended in May.
Out of all housing closings, new home closings represented 9.7%. This is better than the 8.4% of closings a year earlier. After new and existing closings increased in May year-over-year, they stayed level in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes jumped 7.0% year-over-year to $354,875 per unit. This bump follows a move from $340,605 per unit to $338,313 from May 2015 to May 2016.
For newly sold homes, the average mortgage size rose year-over-year along with new home prices. Average mortgage size jumped 5.7% to $300,348 in June from a year earlier. Average mortgage size went from $287,065 in May 2015 to $286,595 in May 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in June 2016. Single-family home closings have made up 71.5% of new home closings while attached unit closings have represented 28.5% of closings.
For all new homes sold, the average unit size fell 7.7% year-over-year to 1,999 square feet in June 2016. The average size of newly sold homes moved from 2,113 square feet in May 2015 to 1,968 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 5.7% of closings, below 7.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.3% in June from 3.7% a year earlier and REO closings moved from 4.1% of existing home closings in June 2015 to 3.3% in June 2016.