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Salt Lake City, UT - Latest New Home Sales Numbers Suggest Market Rise Strengthening.

Posted on: Feb 06, 2012 09:38:43 AM

There was an increase in new home sales in the Salt Lake City, UT market in November year-over-year, and the percentage boost was greater than October 2011, giving hints of improving market conditions. New home sales saw a climb of 36.8% from the year earlier to 171. This was after the housing market saw a 28.7% climb year-over-year in October.

A total of 1,628 new homes were sold during the 12 months that ended in November, up from 1,582 for the year that ended in October.

New home sales made up 10.3% of overall housing sales. This is a rise from 8.5% of sales a year earlier. Following a year-over-year increase in October, sales of new and existing homes also rose year-over-year in November.

Pricing and Mortgage Trends

Average price of newly sold homes saw a 3.6% rise year-over-year in November to $278,701 per unit. The rise is an upward shift from a 2.9% decline in October from a year earlier.

For newly sold homes, the average mortgage size rose year-over-year along with new home prices. In November 2011, the average mortgage size was $241,018, up 9.5% from a year earlier. Average mortgage size dipped 4.5% in October 2011 from a year earlier. Of the overall sale price, the percentage that was being financed increased 4.6 percentage points year-over-year to 86.5% in November 2011. This came after a 1.5 percentage point decline in October from a year earlier.

Other Market Trends

Single-family homes accounted for a greater percentage of new home sales than last year. The share of new home sales belonging to single-family homes gained from 75.2% in November 2010 to 92.4% of sales in November 2011. Conversely, the share of new home sales belonging to attached units sank to 7.6% of sales from 24.8% of sales.

The average unit size of newly sold homes dropped 19.9% year-over-year to 1,566 square feet in November 2011. For newly sold homes, an average size fall contrasting with an average price rise was also seen in October 2011 when the average size of newly sold homes declined 14.7% to 1,714 square feet.

Foreclosures and real estate owned (REO) sales stayed a drag on the market. Together, foreclosures plus REO sales represented 32.5% of existing home sales. In November 2010, they accounted for 39.6%. The percentage of existing home sales involving foreclosures fell to 16.2% in November from 18.5% a year earlier while REO sales as a percentage of existing home sales declined to 16.3% from 21.1% a year earlier.

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