Closings of new homes jumped year-over-year in May in the Colorado Springs, CO market, and the percentage boost was higher than April 2016, implying the market may be improving. New home closings saw a boost of 9.8% from the year earlier to 202. This was after the housing market saw a 2.4% hike year-over-year in April.
A total of 2,482 new homes were sold during the 12 months that ended in May, up from 2,464 for the year that ended in April.
Of 1,677 total closings, 202 were of new homes. This is better than the 10.2% of closings a year earlier. Following a year-over-year increase in April, closings of new and existing homes slid year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes was $347,949 per unit in May, up 6.9%from a year earlier. This bump is smaller than the 7.0% lift in April year-over-year.
The average mortgage size on newly sold homes rose year-over-year along with the average price of new homes. In May 2016, average mortgage size increased 9.1% from a year earlier to $311,298. It went from $303,112 to $306,092 from April 2015 to April 2016.
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 84.2% of new closings in May 2015 to 88.6% of closings in May 2016. Conversely, the share of new home closings belonging to attached units declined to 11.4% of closings from 15.8% of closings.
There was a 2.1% rise year-over-year in the average unit size of newly sold homes to 2,802 square feet in May 2016. An increase in both the average size and price of newly sold homes was also seen in April 2016 when the average size gained 4.3% to 2,755 square feet. The average size of newly sold homes moved from 2,642 square feet in April 2015 to 2,755 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in May, but did not appear to be dragging the market. Together, foreclosures plus REO closings made up 8.3% of existing home closings, down from 8.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.9% in May from 4.9% a year earlier and REO closings moved from 3.9% of existing home closings in May 2015 to 4.3% in May 2016.