New home closings in the Salt Lake City, UT market gained year-over-year in November, and the percentage gain that was sharper than October 2015 seems to indicate improving market conditions. There was a 52.4% climb in new home closings from a year earlier. This was after the housing market saw a 43.2% rise year-over-year in October.
A total of 3,019 new homes were sold during the 12 months that ended in November, up from 2,931 for the year that ended in October.
New home closings accounted for 13.4% of overall housing closings. This marks a rise from 8.9% of total closings a year earlier. Closings of new and existing homes remained steady in November after rising in October year-over-year.
Pricing and Mortgage Trends
In November, there was a 1.0% surge year-over-year in the average price of newly sold homes, reaching $341,811 per unit. This lift is smaller than the 5.8% bump in October year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. It gained 3.2% in November from a year earlier to $291,711. In October 2015, average mortgage size on newly sold homes saw a 5.9% gain year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have risen from last year while closings of single-family homes have slumped. Attached unit closings gained from 22.0% of all closings in November 2014 to 32.8% of closings in November 2015. Conversely, the share belonging to single-family homes declined to 67.2% of closings from 78.0% of closings.
There was a 16.4% fall year-over-year in the average unit size of newly sold homes to 1,844 square feet in November 2015. This decline was opposite the price surge, a pattern also seen in October 2015 when the average size of newly sold homes dropped 27.3% to 1,538 square feet. The average size of newly sold homes moved from 2,116 square feet in October 2014 to 1,538 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in November, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 8.8% of existing home closings, down from 12.3% a year earlier. The percentage of existing home closings involving foreclosures went from 5.1% in November 2014 to 4.3% in November 2015 and REO closings as a percentage of existing home closings declined to 4.5% from 7.2% a year earlier.