In the Boulder, CO market in March, new home closings dropped year-over-year, but there were hints of market improvement with a percentage drop less steep than in February 2016. New home closings saw a 8.8% decline from a year earlier to 73. This was after the housing market saw a 19.6% fall year-over-year in February.
A total of 645 new homes were sold during the 12 months that ended in March, down from 652 for the year that ended in February.
New home closings accounted for 15.4% of overall housing closings. This marks a rise from 13.1% of total closings a year earlier. Following a year-over-year decline in February, closings of new and existing homes also fell year-over-year in March.
Pricing and Mortgage Trends
The average value for new homes sold in March 2016 was $537,099, a move from $534,569 a year earlier. This was on the heels of a 8.3% rise in February year-over-year.
Average mortgage size on new homes increased year-over-year along with new home prices. In March 2016, average mortgage size gained 4.8% from a year earlier to $397,984. Average mortgage size grew 7.8% in February 2016 from a year earlier.
Other Market Trends
As a share of new home closings, single-family home closings have climbed from last year while the share belonging to attached units has fallen. Single-family home closings increased from 62.5% of new closings in March 2015 to 65.8% of closings in March 2016. Meanwhile, attached units as a percentage of all new home closings sank to 34.2% of closings from 37.5% of closings.
The average unit size of newly sold homes climbed 21.1% year-over-year to 2,964 square feet in March 2016. In February, the average size of new homes sold went from 2,417 square feet a year earlier to 2,520 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in March, but did not appear to be dragging the market. Together, foreclosures plus REO closings accounted for 3.0% of existing home closings, down from 6.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 1.2% in March from 4.7% a year earlier and REO closings moved from 1.3% of existing home closings in March 2015 to 1.8% in March 2016.