Closings of new homes in the Provo, UT market increased year-over-year in March, swinging upward year-over-year after little movement in February. Closings moved to 228, marking a 2.7% rise from a year earlier. Closings were unchanged in February from the year earlier.
A total of 2,596 new homes were sold during the 12 months that ended in March, up from 2,590 for the year that ended in February.
Of the total number of closings, new home closings made up 20.7%. A year ago, 20.1% of total closings were new home closings. After rising in February from a year earlier, closings of new and existing homes stayed steady in March.
Pricing and Mortgage Trends
In March, the average price of newly sold homes rose year-over-year to $343,292 per unit, a 3.6% rise. This boost is higher than the 2.9% surge in February year-over-year.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. In March 2016, the average mortgage size was $283,978, up 1.5% from a year earlier. Average mortgage size grew 2.6% in February 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 20.7% of closings in March 2015 to 22.4% of closings in March 2016. At the same time, the share belonging to single-family homes slid to 77.6% of closings from 79.3% of closings.
For all new homes sold, the average unit size fell 13.9% year-over-year to 1,876 square feet in March 2016. The average size of newly sold homes moved from 2,191 square feet in February 2015 to 2,230 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 7.2% of existing home closings, below 10.3% a year earlier. The percentage of existing home closings involving foreclosures went from 3.4% in March 2015 to 2.6% in March 2016 and REO closings as a percentage of existing home closings sank to 4.6% from 6.9% a year earlier.