New home closings sank year-over-year in January in the Fort Collins, CO market, but compared with December 2015, the percentage drop was less steep, hinting the market may be strengthening. New home closings saw a 17.3% fall from a year earlier to 81. This came after a 30.4% drop year-over-year in December.
A total of 1,363 new homes were sold during the 12 months that ended in January, down from 1,380 for the year that ended in December.
New home closings made up 19.6% of overall housing closings. This is down from the a year earlier when new home closings made up 22.5% of total closings. Following a year-over-year decline in December, closings of new and existing homes also slid year-over-year in January.
Pricing and Mortgage Trends
The average price of newly sold homes jumped year-over-year 23.4% in January to $444,961 per unit. This bump is smaller than the 42.7% boost in December 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 January 2016, the average mortgage size was $350,901, a 22.1% gain from a year earlier. In December 2015, average mortgage size climbed 17.5% 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 jumped from 91.8% of new closings in January 2015 to 96.3% of closings in January 2016. Conversely, the share of new home closings belonging to attached units declined to 3.7% of closings from 8.2% of closings.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in January, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 3.6% of existing home closings, down from 5.3% a year earlier. The percentage of existing home closings involving foreclosures stayed at 1.8% of closings in January from a year earlier while REO closings as a percentage of existing home closings slid to 1.8% from 3.6% a year earlier.