New home closings rose year-over-year in April in the Fort Collins, CO market, and the percentage bump, which was better than March 2016, suggested the market may be improving. New home closings saw a 20.5% jump from a year earlier to 159. This came on the heels of a 9.4% hike year-over-year in March.
A total of 1,442 new homes were sold during the 12 months that ended in April, up from 1,415 for the year that ended in March.
New home closings represented 22.5% of overall housing closings. This is an increase on a percentage basis, as new home closings were 18.2% of total closings a year ago. Following a year-over-year rise in March, closings of new and existing homes dropped year-over-year in April.
Pricing and Mortgage Trends
For newly sold homes, the average price climbed 9.2% year-over-year in April to $400,312 per unit. This hike is smaller than the 14.1% boost in March year-over-year.
The average mortgage size on newly sold homes grew year-over-year along with the average price of new homes. Average mortgage size gained 4.2% to $315,212 in April from a year earlier. In March 2016, average mortgage size on newly sold homes saw a 11.1% hike year-over-year from a year earlier.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes climbed from 86.4% in April 2015 to 89.3% of closings in April 2016. Meanwhile, attached units as a percentage of all new home closings declined to 10.7% of closings from 13.6% of closings.
The average unit size of newly sold homes went from 2,326 square feet in April 2015 to 2,347 square feet in April 2016. In March, the average size of new homes sold went from 2,373 square feet a year earlier to 2,441 square feet. In March 2016, the average size of newly sold homes jumped 2.9% from the year earlier.
Foreclosures and real estate owned (REO) closings increased in April from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 5.1% of existing home closings, up from 4.9% a year earlier. The percentage of existing home closings involving foreclosures stayed at 2.4% of closings in April from a year earlier and REO closings moved from 2.5% of existing home closings in April 2015 to 2.7% in April 2016.