Closings of new homes sank year-over-year in April in the Provo, UT market, a shift downward off a hike in March 2016. New home closings saw a 24.8% drop from a year earlier to 185. This came on the heels of a 2.7% climb year-over-year in March.
A total of 2,578 new homes were sold during the 12 months that ended in April, down from 2,639 for the year that ended in March.
Out of all housing closings, new home closings represented 16.7%. This is down from the 20.3% of closings a year earlier. After remaining steady in March from a year earlier, closings of new and existing homes sank year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes was $345,885 per unit in April, up 9.1%from a year earlier. This lift is an improvement over the 4.4% boost in March year-over-year.
For newly sold homes, the average mortgage size jumped year-over-year along with new home prices. Average mortgage size rose 10.3% to $291,514 in April from a year earlier. In March 2016, average mortgage size grew 2.5% from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings rose from 70.7% of new closings in April 2015 to 84.3% of closings in April 2016. Conversely, the share of new home closings belonging to attached units declined to 15.7% of closings from 29.3% of closings.
The average unit size of newly sold homes slid 5.3% year-over-year to 2,031 square feet in April 2016. This drop was opposite the price lift, a pattern also seen in March 2016 when the average size of newly sold homes slid 9.7% to 1,955 square feet. The average size of newly sold homes moved from 2,164 square feet in March 2015 to 1,955 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 6.2% of closings, below 7.0% a year earlier. The percentage of existing home closings involving foreclosures went from 3.0% in April 2015 to 3.2% in April 2016 and REO closings as a percentage of existing home closings dropped to 2.9% from 3.9% a year earlier.