Closings of new homes in the Denver, CO market grew year-over-year in July, and there were signals of strengthening market conditions as the percentage lift was an greater than June 2015. New home closings saw a boost of 28.3% from the year earlier to 566. This followed a 27.4% climb year-over-year in June.
A total of 6,340 new homes were sold during the 12 months that ended in July, up from 6,215 for the year that ended in June.
Of 7,310 total closings, 566 were of new homes. This is better than the 6.4% of closings a year earlier. Following a year-over-year increase in June, closings of new and existing homes also rose year-over-year in July.
Pricing and Mortgage Trends
Average price of newly sold homes had a 18.6% bump year-over-year to $509,849 per unit in July. This rise is higher than the 12.2% surge in June year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In July 2015, the average mortgage size was $394,354, a 16.1% hike from a year earlier. In June 2015, average mortgage size on newly sold homes saw a 14.4% bump year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. Single-family home closings climbed from 81.2% of new closings in July 2014 to 83.7% of closings in July 2015. Conversely, the share of new home closings belonging to attached units fell to 16.3% of closings from 18.8% of closings.
The average unit size of newly sold homes climbed 1.8% year-over-year to 2,595 square feet in July 2015. In June, the average size of new homes sold went from 2,556 square feet a year earlier to 2,569 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings accounted for 5.0% of closings, below 8.4% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.4% in July from 4.4% a year earlier while REO closings as a percentage of existing home closings dropped to 2.6% from 4.0% a year earlier.