New home closings climbed year-over-year in February in the Salt Lake City, UT market, but there were signs of market leveling as the percentage boost was less than January 2016. Closings gained 6.5% from a year earlier to 213. This followed a 17.1% rise year-over-year in January.
A total of 3,208 new homes were sold during the 12 months that ended in February, up from 3,195 for the year that ended in January.
New home closings accounted for 12.1% of overall housing closings. A year earlier, new home closings made up 11.1% of total closings. Following a year-over-year increase in January, closings of new and existing homes declined year-over-year in February.
Pricing and Mortgage Trends
In February, the average price of newly sold homes grew 9.1% year-over-year to $367,146 per unit. This hike is better than the 6.9% rise in January year-over-year.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In February 2016, the average mortgage size on newly sold homes saw a 7.0% gain from a year earlier. Average mortgage size grew 6.9% in January 2016 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 climbed from 67.0% of new closings in February 2015 to 72.8% of closings in February 2016. Conversely, the share of new home closings belonging to attached units sank to 27.2% of closings from 33.0% of closings.
There was a 6.9% drop year-over-year in the average unit size of newly sold homes to 1,923 square feet in February 2016. For newly sold homes, an average size fall contrasting with an average price boost was also seen in January 2016 when the average size of newly sold homes dropped 12.9% to 1,873 square feet. In January, the average size of new homes sold went from 2,151 square feet a year earlier to 1,873 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 12.5% of existing home closings, down from 12.6% a year earlier. The percentage of existing home closings involving foreclosures went from 5.6% in February 2015 to 5.4% in February 2016 and REO closings moved from 7.0% of existing home closings in February 2015 to 7.1% in February 2016.