Closings of new homes in the Denver, CO market sank year-over-year in November, a drop following an increase in October 2015. Closings slid 3.5% from a year earlier to 548. This followed a 1.3% climb year-over-year in October.
A total of 6,740 new homes were sold during the 12 months that ended in November, down from 6,760 for the year that ended in October.
Out of all housing closings, new home closings represented 12.5%. As a part of the whole, new home closings were 12.1% a year earlier. Closings of new and existing homes saw a fall year-over-year in November after remaining steady in October year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 7.9% year-over-year in November to $473,107 per unit. This boost is smaller than the 10.9% hike in October year-over-year.
Along with new home prices, there was an increase year-over-year in the average mortgage size on newly sold homes. In November 2015, there was a 10.7% rise in the average mortgage size, reaching $376,193. Average mortgage size increased 10.7% in October 2015 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. Single-family home closings jumped from 76.4% of new closings in November 2014 to 84.7% of closings in November 2015. Conversely, the share of new home closings belonging to attached units declined to 15.3% of closings from 23.6% of closings.
There was a 2.0% gain year-over-year in the average unit size of newly sold homes to 2,566 square feet in November 2015. In October, the average size of new homes sold went from 2,565 square feet a year earlier to 2,229 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 6.7% of existing closings, lower than 9.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.9% in November from 4.7% a year earlier while REO closings as a percentage of existing home closings fell to 3.8% from 5.2% a year earlier.