The Denver, CO market saw an increase in closings of new homes in February year-over-year, but signs of market leveling were showing as the percentage hike was less than January 2016. Closings climbed 4.6% from a year earlier to 496. This came on the heels of a 16.7% climb year-over-year in January.
A total of 7,179 new homes were sold during the 12 months that ended in February, up from 7,157 for the year that ended in January.
New home closings made up 12.2% of overall housing closings. They represented 11.6% of closings a year earlier. Closings of new and existing homes stayed level after increasing in January year-over-year.
Pricing and Mortgage Trends
The average price of new homes climbed year-over-year in February to $520,159 per unit, a rise of 13.5%. This rise is an improvement over the 7.0% bump in January year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In February 2016, the average mortgage size was $391,513, up 10.3% from a year earlier. In January 2016, average mortgage size on newly sold homes saw a 7.0% surge year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 78.9% in February 2015 to 82.1% of closings in February 2016. Conversely, the share of new home closings belonging to attached units declined to 17.9% of closings from 21.1% of closings.
For all new homes sold, the average unit size sank 7.3% year-over-year to 2,231 square feet in February 2016. The average size of newly sold homes moved from 2,449 square feet in January 2015 to 2,474 square feet in January 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in February, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 8.6% of closings, below 11.6% a year earlier. The percentage of existing home closings involving foreclosures slid to 3.0% in February from 5.6% a year earlier and REO closings moved from 6.1% of existing home closings in February 2015 to 5.6% in February 2016.