Closings of new homes sank year-over-year in June in the Provo, UT market, curving down after an increase in May 2016. Closings slumped 4.2% from a year earlier to 252. This was after the housing market saw 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.
Of the total number of closings, new home closings made up 18.8%. A year ago, 19.3% of total closings were new home closings. Following a year-over-year increase in May, closings of new and existing homes declined year-over-year in June.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in June to $346,568 per unit, a rise of 3.8%. This surge is smaller than the 7.4% gain in May year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. In June 2016, the average mortgage size was $288,770, a 1.6% lift from a year earlier. Average mortgage size grew 6.3% in May 2016 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 jumped from 72.6% of new closings in June 2015 to 78.2% of closings in June 2016. Conversely, the share of new home closings belonging to attached units slid to 21.8% of closings from 27.4% of closings.
There was a 6.1% boost year-over-year in the average unit size of newly sold homes 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 drop from a year earlier in June, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 5.2% of existing home closings, below 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.