In the St. George, UT market in June, new home closings dropped year-over-year, but there were hints that the market may be leveling out with a percentage fall less steep than in May 2016. New home closings saw a decline of 12.1% from the year earlier to 87. In comparison, new home closings in the same month last year saw a 19.2% fall year-over-year in May.
A total of 961 new homes were sold during the 12 months that ended in June, down from 973 for the year that ended in May.
New home closings represented 15.8% of overall housing closings. This is down from the 19.2% of closings a year earlier. Following a drop in May year-over-year, closings of new and existing homes climbed year-over-year in June.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes gained year-over-year to $342,186 in June, up 4.5% from last year. This hike is smaller than the 12.7% lift in May year-over-year.
For newly sold homes, the average mortgage size sank year-over-year in contrast to average price of new homes. In June 2016, average mortgage size slid 1.1% from a year earlier to $298,560. In May 2016, average mortgage size jumped 9.9% from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 92.9% of new home closings to 92.0% of closings while attached units have gone from 7.1% of closings to 8.0% of closings.
The average unit size of newly sold homes increased 22.5% year-over-year to 2,632 square feet in June 2016. An increase was also seen in May 2016 when the average size of new homes sold gained 30.4% to 3,180 square feet. In May, the average size of new homes sold went from 2,438 square feet a year earlier to 3,180 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. Combined, foreclosures plus REO closings made up 5.0% of existing home closings, below 7.9% a year earlier. The percentage of existing home closings involving foreclosures went from 2.9% in June 2015 to 1.9% in June 2016 and REO closings as a percentage of existing home closings sank to 3.0% from 5.0% a year earlier.