There was a rise in closings of new homes in the Colorado Springs, CO market in April year-over-year, but as the percentage increased less than March 2016, the market seemed to show signs of leveling. New home closings saw a climb of 2.0% from the year earlier to 209. This was after the housing market saw a 17.7% boost year-over-year in March.
A total of 2,463 new homes were sold during the 12 months that ended in April, up from 2,459 for the year that ended in March.
As a percentage of overall housing closings, new home closings made up 12.5% of overall housing closings. A year ago, 13.1% of total closings were new home closings. Following a year-over-year increase in March, closings of new and existing homes also climbed year-over-year in April.
Pricing and Mortgage Trends
The average price of new homes was $350,232 per unit in April, up 7.2%from a year earlier. This rise follows a move from $322,573 per unit to $324,753 from March 2015 to March 2016.
There was a gain year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size rose 1.0% to $306,288 in April from a year earlier. In March 2016, average mortgage size remained level from a year earlier at $291,125.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. Single-family home closings jumped from 85.4% of new closings in April 2015 to 87.1% of closings in April 2016. Conversely, the share of new home closings belonging to attached units fell to 12.9% of closings from 14.6% of closings.
For all new homes sold, the average unit size jumped 4.3% year-over-year to 2,755 square feet in April 2016. The average size of newly sold homes moved from 2,628 square feet in March 2015 to 2,625 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Out of all existing home closings, foreclosures combined with REO closings made up 10.8% of closings, below 14.6% a year earlier. The percentage of existing home closings involving foreclosures sank to 5.6% in April from 7.6% a year earlier while REO closings as a percentage of existing home closings declined to 5.2% from 7.1% a year earlier.