In June, there was a drop year-over-year in new home closings in the Colorado Springs, CO market, a drop following an increase in May 2016. There was a 1.2% drop in new home closings from a year earlier. In comparison, new home closings in the same month last year saw a 9.8% jump year-over-year in May.
A total of 2,481 new homes were sold during the 12 months that ended in June, down from 2,484 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 11.3%. This is down from the a year earlier when new home closings accounted for 12.7% of total closings. Following a drop in May year-over-year, closings of new and existing homes gained year-over-year in June.
Pricing and Mortgage Trends
For newly sold homes, the average price moved from $337,040 in June 2015 to $339,701 in June 2016. This was on the heels of a 6.9% rise in May year-over-year.
Average mortgage size on new homes declined year-over-year in contrast to new home prices. In June 2016, the average mortgage size on newly sold homes saw a 1.5% decline from a year earlier. In May 2016, average mortgage size on newly sold homes saw a 9.1% boost year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings climbed from 84.9% of new closings in June 2015 to 86.4% of closings in June 2016. Conversely, the share of new home closings belonging to attached units sank to 13.6% of closings from 15.1% of closings.
There was a 3.2% drop year-over-year in the average unit size of newly sold homes to 2,621 square feet in June 2016. The average size of newly sold homes moved from 2,745 square feet in May 2015 to 2,747 square feet in May 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 8.6% of existing home closings, down from 9.2% a year earlier. The percentage of existing home closings involving foreclosures went from 4.0% in June 2015 to 4.4% in June 2016 and REO closings as a percentage of existing home closings slid to 4.2% from 5.3% a year earlier.