In November, closings of new homes rose year-over-year in the Provo, UT market, but the increased on a percentage basis less sharlpy than October 2015, showing signs of market stabilization. New home closings saw a climb of 1.2% from the year earlier to 173. In comparison, new home closings in the same month last year saw a 4.3% climb year-over-year in October.
A total of 2,453 new homes were sold during the 12 months that ended in November, up from 2,451 for the year that ended in October.
Out of all housing closings, new home closings represented 21.7%. This is better than the 17.4% of closings a year earlier. Following a year-over-year decline in October, closings of new and existing homes also fell year-over-year in November.
Pricing and Mortgage Trends
In November, the average price of newly sold homes increased year-over-year to $338,671 per unit, a 5.2% surge. This rise compares to a 1.2% decline in October from a year earlier.
Average mortgage size on new homes gained year-over-year along with new home prices. The average mortgage size rose to $287,668 in November, marking a 26.2% bump compared with a year earlier. Average mortgage size slid 1.8% in October 2015 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 jumped from 69.0% in November 2014 to 75.7% of closings in November 2015. Conversely, the share of new home closings belonging to attached units declined to 24.3% of closings from 31.0% of closings.
The average unit size of newly sold homes rose 18.0% year-over-year to 2,370 square feet in November 2015. The average size of newly sold homes moved from 2,297 square feet in October 2014 to 2,318 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, represented 9.6% of existing closings, lower than 14.3% a year earlier. The percentage of existing home closings involving foreclosures went from 3.6% in November 2014 to 4.5% in November 2015 and REO closings as a percentage of existing home closings sank to 5.1% from 10.7% a year earlier.