In August, there was an increase in closings of new homes in the St. George, UT market year-over-year, rebounding from a year-over-year fall in July 2015. There was a 10.4% jump in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 13.3% decline year-over-year in July.
A total of 819 new homes were sold during the 12 months that ended in August, up from 812 for the year that ended in July.
Of the total number of closings, new home closings made up 15.3%. New home closings were 16.3% of overall closings last year. Closings of new and existing homes climbed year-over-year in August after also rising in July year-over-year.
Pricing and Mortgage Trends
In August, there was a 13.1% gain year-over-year in the average price of newly sold homes, reaching $356,028 per unit. This boost is an improvement over the 1.1% lift in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. The average mortgage size saw a 16.8% rise year-over-year to $312,935 in August. Average mortgage size grew 3.9% in July 2015 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings gained from 6.0% of all closings in August 2014 to 10.8% of closings in August 2015. Conversely, the share belonging to single-family homes slid to 89.2% of closings from 94.0% of closings.
For all new homes sold, the average unit size fell 2.5% year-over-year to 2,388 square feet in August 2015. This decline was opposite the price lift, a pattern also seen in July 2015 when the average size of newly sold homes slid 22.9% to 1,985 square feet. The average size of newly sold homes moved from 2,573 square feet in July 2014 to 1,985 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in August, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 6.4% of existing home closings, down from 17.2% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.2% in August from 9.0% a year earlier while REO closings as a percentage of existing home closings sank to 4.2% from 8.1% a year earlier.