There was a rise in new home closings in the Denver, CO market in September year-over-year, and the percentage boost that was sharper than August 2015 seems to indicate improving market conditions. New home closings saw a 22.5% jump from a year earlier to 636. This followed a 7.1% hike year-over-year in August.
A total of 6,740 new homes were sold during the 12 months that ended in September, up from 6,623 for the year that ended in August.
New home closings represented 9.9% of overall housing closings. A year ago, new home closings made up 8.9%. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year 10.9% in September to $494,548 per unit. This gain is smaller than the 12.7% surge in August year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. In September 2015, the average mortgage size was $388,911, a 10.6% gain from a year earlier. In August 2015, average mortgage size gained 11.2% from a year earlier.
Other Market Trends
There has been little change in the composition of the market with regard to the types of properties sold. From a year ago, single-family home closings have moved from 82.9% of new home closings to 83.0% of closings while attached units have gone from 17.1% of closings to 17.0% of closings.
The average unit size of newly sold homes sank 8.6% year-over-year to 2,404 square feet in September 2015. For newly sold homes, an average size drop contrasting with an average price lift was also seen in August 2015 when the average size of newly sold homes fell 6.3% to 2,430 square feet. In August, the average size of new homes sold went from 2,594 square feet a year earlier to 2,430 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 5.1% of existing closings, lower than 8.9% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.1% in September from 4.3% a year earlier while REO closings as a percentage of existing home closings fell to 3.0% from 4.6% a year earlier.