New home closings in the Colorado Springs, CO market climbed year-over-year in February, but the percentage lift was less than January 2016, suggesting the market may be leveling. New home closings saw a jump of 28.1% from the year earlier to 178. In comparison, new home closings in the same month last year saw a 45.4% jump year-over-year in January.
A total of 2,413 new homes were sold during the 12 months that ended in February, up from 2,374 for the year that ended in January.
Out of all housing closings, new home closings represented 14.9%. This is a bump from 13.5% of closings a year earlier. Following a year-over-year increase in January, closings of new and existing homes also climbed year-over-year in February.
Pricing and Mortgage Trends
The average per-unit price of newly sold homes grew year-over-year to $330,389 in February, up 2.6% from last year. This bump is smaller than the 3.2% rise in January year-over-year.
The average mortgage size on newly sold homes saw a gain year-over-year along with new home prices. In February 2016, average mortgage size rose 5.1% from a year earlier to $293,365. Average mortgage size went from $292,729 in January 2015 to $290,071 in January 2016.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in February 2016. Single-family home closings have made up 84.8% of new home closings while attached unit closings have accounted for 15.2% of closings.
For all new homes sold, the average unit size jumped 4.2% year-over-year to 2,832 square feet in February 2016. In January, the average size of new homes sold went from 2,642 square feet a year earlier to 2,967 square feet. An increase in both the average size and price of newly sold homes was also seen in January 2016 when the average size grew 12.3% to 2,967 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in February, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 12.7% of existing home closings, below 20.7% a year earlier. The percentage of existing home closings involving foreclosures declined to 4.7% in February from 10.0% a year earlier while REO closings as a percentage of existing home closings fell to 8.0% from 10.7% a year earlier.