New home closings rose year-over-year in May in the Denver, CO market, and with a stronger lift than April 2016, there are hints the market may be bolstering. Closings climbed 24.4% from a year earlier to 663. This followed a 16.5% jump year-over-year in April.
A total of 7,471 new homes were sold during the 12 months that ended in May, up from 7,341 for the year that ended in April.
Out of all housing closings, new home closings accounted for 10.7%. This is better than the 8.1% of closings a year earlier. Closings of new and existing homes fell year-over-year in May after also falling in April year-over-year.
Pricing and Mortgage Trends
Average price of newly sold homes had a 1.4% rise year-over-year to $492,903 per unit in May. This hike is smaller than the 4.2% bump in April year-over-year.
For newly sold homes, average mortgage size moved from $377,023 in May 2015 to $375,783 in May 2016. In April 2016, average mortgage size increased 1.7% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have risen from last year while single-family home closings have dropped. Attached unit closings grew from 13.9% of all closings in May 2015 to 16.9% of closings in May 2016. Conversely, the share belonging to single-family homes sank to 83.1% of closings from 86.1% of closings.
There was a 1.7% fall year-over-year in the average unit size of newly sold homes to 2,616 square feet in May 2016. For newly sold homes, an average size drop contrasting with an average price gain was also seen in April 2016 when the average size of newly sold homes slid 5.0% to 2,547 square feet. The average size of newly sold homes moved from 2,681 square feet in April 2015 to 2,547 square feet in April 2016.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Together, foreclosures plus REO closings represented 4.5% of existing home closings, down from 5.2% a year earlier. The percentage of existing home closings involving foreclosures went from 2.3% in May 2015 to 1.7% in May 2016 and REO closings moved from 2.9% of existing home closings in May 2015 to 2.8% in May 2016.