New home closings in the Colorado Springs, CO market rose year-over-year in January, and the percentage lift that was sharper than December 2015 seems to indicate improving market conditions. There was a 44.5% climb in new home closings from a year earlier. This was after the housing market saw a 10.1% boost year-over-year in December.
A total of 2,370 new homes were sold during the 12 months that ended in January, up from 2,317 for the year that ended in December.
New home closings represented 15.8% of overall housing closings. This is better than the 13.4% of closings a year earlier. Following a year-over-year increase in December, closings of new and existing homes also climbed year-over-year in January.
Pricing and Mortgage Trends
For newly sold homes, the average price grew 3.5% year-over-year in January to $338,067 per unit. This surge is smaller than the 6.7% lift in December year-over-year.
For newly sold homes, average mortgage size moved from $292,729 in January 2015 to $290,869 in January 2016. In December 2015, average mortgage size climbed 1.7% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. Attached unit closings grew from 10.9% of all closings in January 2015 to 16.9% of closings in January 2016. Conversely, the share belonging to single-family homes declined to 83.1% of closings from 89.1% of closings.
For all new homes sold, the average unit size grew 12.3% year-over-year to 2,967 square feet in January 2016. In December, the average size of new homes sold went from 2,727 square feet a year earlier to 2,774 square feet. An increase was also seen in December 2015 when the average size of new homes sold increased 1.7% to 2,774 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in January, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 19.2% of existing home closings, below 24.5% a year earlier. The percentage of existing home closings involving foreclosures slid to 9.8% in January from 11.3% a year earlier while REO closings as a percentage of existing home closings fell to 9.4% from 13.2% a year earlier.