New home closings increased year-over-year in September in the Denver, CO market, and the percentage surge that was sharper than August 2015 seems to indicate improving market conditions. New home closings saw a climb of 22.5% from the year earlier to 636. This came on the heels of a 7.1% boost year-over-year in August.
A total of 6,740 new homes were sold during the 12 months that ended in September, up from 6,623 for the year that ended in August.
Of the total number of closings, new home closings made up 9.9%. As a part of the whole, new home closings were 8.9% a year earlier. Following a year-over-year increase in August, closings of new and existing homes also rose year-over-year in September.
Pricing and Mortgage Trends
The average price of new homes was $494,548 per unit in September, up 10.9%from a year earlier. This rise is smaller than the 12.7% boost in August year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. In September 2015, the average mortgage size was $388,911, a 10.6% bump from a year earlier. Average mortgage size jumped 11.2% in August 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 82.9% of new home closings to 83.0% of closings while attached units have gone from 17.1% of closings to 17.0% of closings.
For all new homes sold, the average unit size slid 8.6% year-over-year to 2,404 square feet in September 2015. For newly sold homes, an average size decline contrasting with an average price gain was also seen in August 2015 when the average size of newly sold homes fell 6.3% to 2,430 square feet. The average size of newly sold homes moved from 2,594 square feet in August 2014 to 2,430 square feet in August 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 5.1% of existing closings, lower than 8.9% a year earlier. The percentage of existing home closings involving foreclosures sank to 2.1% in September from 4.3% a year earlier while REO closings as a percentage of existing home closings declined to 3.0% from 4.6% a year earlier.