Closings of new homes in the Ogden, UT market slid year-over-year in December, and the percentage drop worsened from November 2015, indicating the market may be weakening. New home closings saw a fall of 28.7% from the year earlier to 87. This came on the heels of a 6.2% fall year-over-year in November.
A total of 1,479 new homes were sold during the 12 months that ended in December, down from 1,514 for the year that ended in November.
New home closings made up 8.7% of overall housing closings. This is down from the 12.5% of closings a year earlier. Following a drop in November year-over-year, closings of new and existing homes rose year-over-year in December.
Pricing and Mortgage Trends
The average price of newly sold homes rose year-over-year 3.3% in December to $337,931 per unit. This gain is smaller than the 5.2% rise in November year-over-year.
The average mortgage size on newly sold homes slid year-over-year in contrast to the average price of new homes. It sank 2.5% in December from a year earlier, reaching $291,162. In November 2015, average mortgage size slid 1.4% 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 gained from 86.1% in December 2014 to 88.5% of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings slid to 11.5% of closings from 13.9% of closings.
The average unit size of newly sold homes declined 11.4% year-over-year to 1,927 square feet in December 2015. For newly sold homes, an average size fall contrasting with an average price rise was also seen in November 2015 when the average size of newly sold homes sank 13.6% to 1,937 square feet. In November, the average size of new homes sold went from 2,242 square feet a year earlier to 1,937 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.8% of closings, below 18.2% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.1% in December from 9.0% a year earlier while REO closings as a percentage of existing home closings dropped to 6.7% from 9.2% a year earlier.