Closings of new homes increased year-over-year in January in the Denver, CO market, but the percentage lift was less than December 2015, suggesting the market may be leveling. There was a 12.4% rise in new home closings from a year earlier. This followed a 29.4% boost year-over-year in December.
A total of 7,135 new homes were sold during the 12 months that ended in January, up from 7,092 for the year that ended in December.
Of the total number of closings, new home closings made up 10.8%. A year earlier, new home closings accounted for 10.2% of total closings. Closings of new and existing homes climbed year-over-year in January after also rising in December year-over-year.
Pricing and Mortgage Trends
The average price of new homes gained year-over-year in January to $503,372 per unit, a rise of 7.2%. This hike is better than the 7.1% bump in December year-over-year.
For newly sold homes, the average mortgage size saw a surge year-over-year along with new home prices. In January 2016, the average mortgage size was $391,254, up 7.2% from a year earlier. In December 2015, average mortgage size gained 4.8% 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 gained from 81.6% in January 2015 to 84.6% of closings in January 2016. Meanwhile, attached units as a percentage of all new home closings declined to 15.4% of closings from 18.4% of closings.
For all new homes sold, the average unit size grew 1.7% year-over-year to 2,490 square feet in January 2016. The average size of newly sold homes moved from 2,566 square feet in December 2014 to 2,453 square feet in December 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in January, but did not appear to be dragging the market. Combined, foreclosures plus REO closings made up 6.9% of existing home closings, below 12.1% a year earlier. The percentage of existing home closings involving foreclosures fell to 2.4% in January from 5.5% a year earlier while REO closings as a percentage of existing home closings sank to 4.5% from 6.6% a year earlier.