In December, closings of new homes gained year-over-year in the Denver, CO market, and the market seemed to be improving as the percentage hike was larger than that of November 2015. Closings gained 27.5% from a year earlier to 815. This followed a 5.8% boost year-over-year in November.
A total of 7,067 new homes were sold during the 12 months that ended in December, up from 6,891 for the year that ended in November.
Out of all housing closings, new home closings made up 14.6%. This is an increase on a percentage basis, as new home closings were 12.4% of total closings a year ago. Following a fall in November year-over-year, closings of new and existing homes increased year-over-year in December.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year 6.5% in December to $496,366 per unit. This bump is smaller than the 11.8% hike in November year-over-year.
Average mortgage size on new homes jumped year-over-year along with new home prices. The average mortgage size rose to $380,726 in December, marking a 4.1% lift compared with a year earlier. Average mortgage size gained 11.7% 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 82.2% of new home closings to 81.8% of closings while attached units have gone from 17.8% of closings to 18.2% of closings.
For all new homes sold, the average unit size dropped 6.4% year-over-year to 2,401 square feet in December 2015. The average size of newly sold homes moved from 2,517 square feet in November 2014 to 2,612 square feet in November 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in December, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 6.9% of existing home closings, below 9.8% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.8% in December from 4.3% a year earlier while REO closings as a percentage of existing home closings declined to 4.1% from 5.5% a year earlier.