There was a rise in new home closings in the Provo, UT market in January year-over-year, but with a rise less sharp than December 2015, there were suggestions the market may be stabilizing. New home closings saw a climb of 10.9% from the year earlier to 143. This was after the housing market saw a 22.2% boost year-over-year in December.
A total of 2,588 new homes were sold during the 12 months that ended in January, up from 2,574 for the year that ended in December.
Out of all housing closings, new home closings represented 20.7%. This is better than the 17.7% of closings a year earlier. After rising year-over-year in December, closings of new and existing homes dropped year-over-year in January.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes rose year-over-year to $347,695 in January, up 5.7% from last year. This rise is smaller than the 9.1% bump in December year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In January 2016, the average mortgage size was $292,995, a 6.2% bump from a year earlier. In December 2015, average mortgage size on newly sold homes saw a 11.9% rise 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 grew from 72.1% in January 2015 to 84.6% of closings in January 2016. At the same time, the share of new home closings belonging to attached units declined to 15.4% of closings from 27.9% of closings.
For all new homes sold, the average unit size grew 11.9% year-over-year to 2,478 square feet in January 2016. In December, the average size of new homes sold went from 2,317 square feet a year earlier to 2,296 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 11.3% of closings, below 15.1% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.1% in January from 6.2% a year earlier while REO closings as a percentage of existing home closings fell to 6.2% from 9.0% a year earlier.