New home closings in the Provo, UT market remained steady year-over-year in February, stabilizing after a bump in January from the year earlier. Closings remained steady from a year earlier at 172. In the year-earlier month, there was a 11.6% boost in new home closings.
A total of 2,590 new homes were sold during the 12 months that ended in February, equal to the number of new homes sold for the year that ended in January.
As a percentage of overall housing closings, new home closings represented 20.8% of overall housing closings. As a part of the whole, new home closings were 21.4% a year earlier. After dropping in January from a year earlier, closings of new and existing homes rose year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year 3.1% in February to $328,527 per unit. This rise is smaller than the 5.7% surge in January year-over-year.
The average mortgage size on newly sold homes saw a boost year-over-year along with new home prices. In February 2016, the average mortgage size was $276,205, a 2.8% lift from a year earlier. Average mortgage size rose 6.2% in January 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. The share of new home closings belonging to attached units gained from 17.4% of closings in February 2015 to 22.7% of closings in February 2016. Conversely, the share belonging to single-family homes declined to 77.3% of closings from 82.6% of closings.
The average unit size of newly sold homes remained steady year-over-year at 2,192 square feet in February 2016. In January, the average size of new homes sold went from 2,215 square feet a year earlier to 2,478 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 9.6% of closings, below 12.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.6% in February 2015 to 5.0% in February 2016 and REO closings as a percentage of existing home closings dropped to 4.6% from 7.6% a year earlier.