In March, closings of new homes jumped year-over-year in the Denver, CO market, but with an increase less steep than that of February 2016, the market seemed to be showing signs of stabilizing. From a year ago to March 2016, new home closings moved from 678 to 684. This compares with a 6.9% boost in February from the year earlier.
A total of 7,217 new homes were sold during the 12 months that ended in March, up from 7,211 for the year that ended in February.
As a percentage of overall housing closings, new home closings made up 12.8% of overall housing closings. A year ago, 12.1% of total closings were new home closings. After remaining steady in February from a year earlier, closings of new and existing homes declined year-over-year in March.
Pricing and Mortgage Trends
The average price of newly sold homes climbed year-over-year 6.7% in March to $483,646 per unit. This lift is smaller than the 13.3% surge in February year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. The average mortgage size rose to $377,695 in March, marking a 6.8% rise compared with a year earlier. Average mortgage size jumped 10.2% in February 2016 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 80.2% of new home closings to 80.1% of closings while attached units have gone from 19.8% of closings to 19.9% of closings.
For all new homes sold, the average unit size dropped 4.4% year-over-year to 2,486 square feet in March 2016. The average size of newly sold homes moved from 2,458 square feet in February 2015 to 2,581 square feet in February 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in March, but did not look to be a burden on the market. Combined, foreclosures plus REO closings made up 6.0% of existing home closings, below 8.4% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.2% in March from 3.4% a year earlier while REO closings as a percentage of existing home closings dropped to 3.8% from 5.0% a year earlier.