In December, there was an increase in closings of new homes in the Salt Lake City, UT market year-over-year, but as the percentage climbed less than November 2015, the market seemed to show signs of leveling. Closings climbed 38.3% from a year earlier to 365. In comparison, new home closings in the same month last year saw a 59.5% boost year-over-year in November.
A total of 3,148 new homes were sold during the 12 months that ended in December, up from 3,047 for the year that ended in November.
Of 2,243 total closings, 365 were of new homes. This marks a rise from 12.8% of total closings a year earlier. For new and existing homes, closings gained year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
The average value for new homes sold in December 2015 was $364,912, a move from $368,341 a year earlier. This followed a 2.3% decline in November from a year earlier.
For newly sold homes, average mortgage size moved from $306,384 in December 2014 to $308,982 in December 2015. In November 2015, average mortgage size climbed 1.7% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units climbed from 23.9% of closings in December 2014 to 25.5% of closings in December 2015. Meanwhile, single-family home closings as a percentage of all new home closings fell to 74.5% of closings from 76.1% of closings.
There was a 15.2% drop year-over-year in the average unit size of newly sold homes to 1,896 square feet in December 2015. The average size of newly sold homes moved from 2,205 square feet in November 2014 to 1,861 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 10.0% of existing home closings, below 14.7% a year earlier. The percentage of existing home closings involving foreclosures sank to 3.8% in December from 6.6% a year earlier while REO closings as a percentage of existing home closings declined to 6.2% from 8.1% a year earlier.