New home closings in the Denver, CO market climbed year-over-year in June, but the percentage boost was less pronounced than May 2016, indicating the market may be stabilizing. There was a 5.9% climb in new home closings from a year earlier. This was after the housing market saw a 25.7% rise year-over-year in May.
A total of 7,612 new homes were sold during the 12 months that ended in June, up from 7,570 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 10.9%. This marks a rise from 8.9% of total closings a year earlier. Closings of new and existing homes declined year-over-year in June after also falling in May year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $508,811 per unit in June, up 4.7%from a year earlier. This surge is higher than the 1.8% rise in May year-over-year.
The average mortgage size on newly sold homes saw a bump year-over-year along with new home prices. The average mortgage size saw a 4.5% boost year-over-year to $396,546 in June. It went from $377,225 to $377,895 from May 2015 to May 2016.
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. Single-family home closings rose from 80.6% of new closings in June 2015 to 84.4% of closings in June 2016. At the same time, the share of new home closings belonging to attached units dropped to 15.6% of closings from 19.4% of closings.
There was a 5.3% lift year-over-year in the average unit size of newly sold homes to 2,766 square feet in June 2016. In May, the average size of new homes sold went from 2,619 square feet a year earlier to 2,588 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in June, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 4.0% of existing home closings, down from 4.6% a year earlier. The percentage of existing home closings involving foreclosures stayed at 1.8% of closings in June from a year earlier and REO closings moved from 2.7% of existing home closings in June 2015 to 2.1% in June 2016.