In the Denver, CO market in May, new home closings rose year-over-year, and the market seemed to be signaling strengthening with a percentage lift more robust than April 2016. New home closings saw a 24.4% climb from a year earlier to 663. This came after 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.
New home closings accounted for 10.7% of overall housing closings. This marks a rise from 8.1% of total closings a year earlier. For new and existing homes, closings slid in May after also declining in April year-over-year.
Pricing and Mortgage Trends
For newly sold homes, the average price rose 1.4% year-over-year in May to $492,903 per unit. This gain is smaller than the 4.2% hike in April year-over-year.
In May 2016, average mortgage size on newly sold homes moved from $377,023 to $375,783 from May 2015. Average mortgage size grew 1.7% in April 2016 from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have gained from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 13.9% of closings in May 2015 to 16.9% of closings in May 2016. At the same time, the share belonging to single-family homes dropped 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. This decline was opposite the price boost, a pattern also seen in April 2016 when the average size of newly sold homes dropped 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 appear to be dragging the market. Combined, foreclosures plus REO closings accounted for 4.5% of existing home closings, below 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.