There was an increase in closings of new homes in the Colorado Springs, CO market in November year-over-year, and there were hints of strengthening market conditions as the percentage boost was an greater than October 2015. Closings increased 21.5% from a year earlier to 198. In comparison, new home closings in the same month last year saw a 11.4% hike year-over-year in October.
A total of 2,263 new homes were sold during the 12 months that ended in November, up from 2,228 for the year that ended in October.
Of 1,201 total closings, 198 were of new homes. This is better than the 15.3% of closings a year earlier. Following a year-over-year increase in October, closings of new and existing homes also increased year-over-year in November.
Pricing and Mortgage Trends
The average price of new homes was $349,357 per unit in November, up 8.9%from a year earlier. This rise follows a move from $328,323 per unit to $329,572 from October 2014 to October 2015.
For newly sold homes, the average mortgage size saw a lift year-over-year along with new home prices. In November 2015, average mortgage size jumped 5.1% from a year earlier to $302,892. It went from $290,121 to $290,745 from October 2014 to October 2015.
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. The share of new home closings belonging to single-family homes grew from 82.8% in November 2014 to 88.4% of closings in November 2015. Conversely, the share of new home closings belonging to attached units dropped to 11.6% of closings from 17.2% of closings.
For all new homes sold, the average unit size climbed 11.0% year-over-year to 2,955 square feet in November 2015. The average size of newly sold homes moved from 2,780 square feet in October 2014 to 2,629 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in November, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 16.4% of existing closings, lower than 17.8% a year earlier. The percentage of existing home closings involving foreclosures went from 7.4% in November 2014 to 7.6% in November 2015 and REO closings as a percentage of existing home closings slid to 8.8% from 10.4% a year earlier.