There was an increase in new home closings in the Salt Lake City, UT market in August year-over-year, and the percentage boost was an improvement from July 2015, suggesting the market may be gaining momentum. New home closings saw a rise of 49.5% from the year earlier to 302. In comparison, new home closings in the same month last year saw a 10.7% boost year-over-year in July.
A total of 2,695 new homes were sold during the 12 months that ended in August, up from 2,595 for the year that ended in July.
New home closings accounted for 11.6% of overall housing closings. This is better than the 8.9% of closings a year earlier. Following a year-over-year increase in July, closings of new and existing homes also grew year-over-year in August.
Pricing and Mortgage Trends
The average per-unit value of new homes dropped year-over-year to $336,806 in August, a decline of 2.1% from a year earlier. This decline follows a move from $325,936 per unit in July 2014 to $324,694 in July 2015.
The average mortgage size on newly sold homes saw a fall year-over-year in contrast to new home prices. In August 2015, the average mortgage size on newly sold homes saw a 1.1% drop from a year earlier. Average mortgage size went from $278,359 in July 2014 to $277,129 in July 2015.
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 grew from 25.2% of closings in August 2014 to 46.0% of closings in August 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 54.0% of closings from 74.8% of closings.
There was a 22.1% decline year-over-year in the average unit size of newly sold homes to 1,773 square feet in August 2015. The average size of newly sold homes moved from 2,045 square feet in July 2014 to 1,978 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 8.4% of existing closings, lower than 12.2% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.5% in August from 6.2% a year earlier while REO closings as a percentage of existing home closings dropped to 4.9% from 6.0% a year earlier.