There was an increase in closings of new homes in the Salt Lake City, UT market in September year-over-year, but with an increase less steep than that of August 2015, the market seemed to be showing signs of stabilizing. Closings gained 47.7% from a year earlier to 294. This followed a 51.5% hike year-over-year in August.
A total of 2,808 new homes were sold during the 12 months that ended in September, up from 2,713 for the year that ended in August.
New home closings accounted for 11.6% of overall housing closings. This is a rise from 9.4% of closings a year earlier. For new and existing homes, closings jumped year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
In September, the average price of newly sold homes gained year-over-year to $334,956 per unit, a 1.1% lift. This gain compares to a 2.3% decline in August from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. It increased to $283,388 in September, a 1.6% lift. Average mortgage size sank 1.3% in August 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have grown from last year while single-family home closings have dropped. The share of new home closings belonging to attached units rose from 25.1% of closings in September 2014 to 33.3% of closings in September 2015. Conversely, the share belonging to single-family homes declined to 66.7% of closings from 74.9% of closings.
The average unit size of newly sold homes slid 9.1% year-over-year to 1,879 square feet in September 2015. In August, the average size of new homes sold went from 2,275 square feet a year earlier to 1,773 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 8.4% of existing closings, lower than 12.7% a year earlier. The percentage of existing home closings involving foreclosures dropped to 3.9% in September from 7.3% a year earlier and REO closings moved from 5.4% of existing home closings in September 2014 to 4.5% in September 2015.