In the Provo, UT market in June, new home closings declined year-over-year, moving downward after a hike in May 2016. New home closings saw a 4.2% fall from a year earlier to 252. This came on the heels of a 19.7% hike year-over-year in May.
A total of 2,621 new homes were sold during the 12 months that ended in June, down from 2,632 for the year that ended in May.
As a percentage of overall housing closings, new home closings accounted for 18.8% of overall housing closings. They accounted for 19.3% of closings a year earlier. Following a year-over-year increase in May, closings of new and existing homes slid year-over-year in June.
Pricing and Mortgage Trends
In June, the average price of newly sold homes grew 3.8% year-over-year to $346,568 per unit. This gain is smaller than the 7.4% bump in May year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. In June 2016, average mortgage size grew 1.6% from a year earlier to $288,770. In May 2016, average mortgage size on newly sold homes saw a 6.3% surge 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. Single-family home closings climbed from 72.6% of new closings in June 2015 to 78.2% of closings in June 2016. Meanwhile, attached units as a percentage of all new home closings declined to 21.8% of closings from 27.4% of closings.
For all new homes sold, the average unit size jumped 6.1% year-over-year to 2,314 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size climbed 6.5% to 2,209 square feet. In May, the average size of new homes sold went from 2,075 square feet a year earlier to 2,209 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in June, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 5.2% of existing closings, lower than 5.8% a year earlier. The percentage of existing home closings involving foreclosures went from 2.5% in June 2015 to 2.3% in June 2016 and REO closings moved from 3.4% of existing home closings in June 2015 to 2.9% in June 2016.