New home closings jumped year-over-year in July in the Colorado Springs, CO market, and there were signals that the market may be improving as the percentage rise was better than June 2016. Closings climbed 3.3% from a year earlier to 219. The came on the heels of a move from 245 in June 2015 to 212 in June 2016.
A total of 2,493 new homes were sold during the 12 months that ended in July, up from 2,486 for the year that ended in June.
Out of all housing closings, new home closings represented 11.5%. A year earlier, new home closings represented 11.6% of total closings. For new and existing homes, closings increased year-over-year in July after also increasing in June year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price jumped 9.1% year-over-year in July to $358,383 per unit. This gain compares to a period of little change in June from a year earlier.
The average mortgage size on newly sold homes gained year-over-year along with the average price of new homes. The average mortgage size saw a 7.4% bump year-over-year to $312,854 in July. In June 2016, average mortgage size declined 2.1% from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have fallen. Attached unit closings grew from 9.9% of all closings in July 2015 to 11.0% of closings in July 2016. Conversely, the share belonging to single-family homes dropped to 89.0% of closings from 90.1% of closings.
The average unit size of newly sold homes rose 12.3% year-over-year to 3,023 square feet in July 2016. The average size of newly sold homes moved from 2,707 square feet in June 2015 to 2,600 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 7.5% of existing closings, lower than 11.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 4.1% in July from 6.2% a year earlier while REO closings as a percentage of existing home closings dropped to 3.3% from 5.7% a year earlier.