There was an increase in new home closings in the Colorado Springs, CO market in December year-over-year, but the percentage gain, which was less than November 2015, seemed to suggest market leveling. New home closings saw a 9.2% climb from a year earlier to 226. This followed a 24.0% jump year-over-year in November.
A total of 2,319 new homes were sold during the 12 months that ended in December, up from 2,300 for the year that ended in November.
As a percentage of overall housing closings, new home closings accounted for 15.0%. This is down from the 17.0% of closings a year earlier. For new and existing homes, closings gained year-over-year in December after also increasing in November year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 6.9% year-over-year in December to $344,858 per unit. This gain is smaller than the 8.4% rise in November year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In December 2015, there was a 1.9% gain in the average mortgage size, reaching $294,685. Average mortgage size climbed 5.4% in November 2015 from a year earlier.
Other Market Trends
There has not been much movement in the composition of the market with regard of the types of properties sold. From a year ago, single-family home closings have moved from 86.0% of new home closings to 85.8% of closings while attached units have gone from 14.0% of closings to 14.2% of closings.
The average unit size of newly sold homes jumped 1.7% year-over-year to 2,774 square feet in December 2015. In November, the average size of new homes sold went from 2,655 square feet a year earlier to 2,825 square feet. An increase in both the average size and price of newly sold homes was also seen in November 2015 when the average size grew 6.4% to 2,825 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not appear to be dragging the market. Combined, foreclosures plus REO closings represented 13.5% of existing home closings, below 17.6% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.6% in December from 7.7% a year earlier while REO closings as a percentage of existing home closings declined to 6.9% from 9.9% a year earlier.