In April, the Salt Lake City, UT market saw a drop year-over-year in new home closings, sliding down after a boost in March 2016. New home closings saw a 7.5% fall from a year earlier to 245. This came after a 39.2% boost year-over-year in March.
A total of 3,293 new homes were sold during the 12 months that ended in April, down from 3,313 for the year that ended in March.
Out of all housing closings, new home closings made up 10.9%. New home closings were 10.3% of overall closings last year. Closings of new and existing homes slid year-over-year in April after also falling in March year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes saw a 1.8% bump year-over-year in April to $350,322 per unit. This lift is smaller than the 5.0% gain in March year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In April 2016, the average mortgage size was $297,853, up 1.8% from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 4.6% surge year-over-year from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. The share of new home closings belonging to single-family homes increased from 64.9% in April 2015 to 70.2% of closings in April 2016. Conversely, the share of new home closings belonging to attached units fell to 29.8% of closings from 35.1% of closings.
The average unit size of newly sold homes gained 4.4% year-over-year to 2,234 square feet in April 2016. In March, the average size of new homes sold went from 2,155 square feet a year earlier to 1,950 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 6.9% of existing home closings, below 11.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.7% in April from 5.4% a year earlier while REO closings as a percentage of existing home closings sank to 4.2% from 5.7% a year earlier.