The Fort Collins, CO market saw an increase in closings of new homes in May year-over-year, and with a stronger lift in comparison with April 2016, the market seems to be strengthening. New home closings saw a rise of 26.2% from the year earlier to 130. This was after the housing market saw a 22.0% climb year-over-year in April.
A total of 1,475 new homes were sold during the 12 months that ended in May, up from 1,448 for the year that ended in April.
Of 742 total closings, 130 were of new homes. This is better than the 14.3% of closings a year earlier. After dropping in April from a year earlier, closings of new and existing homes jumped year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes grew year-over-year 8.7% in May to $432,539 per unit. This gain is smaller than the 9.6% bump in April year-over-year.
For newly sold homes, the average mortgage size increased year-over-year along with new home prices. In May 2016, the average mortgage size was $335,156, a 6.5% gain from a year earlier. In April 2016, average mortgage size on newly sold homes saw a 4.5% rise year-over-year from a year earlier.
Other Market Trends
Single-family homes accounted for a greater percentage of new home closings than last year. The share of new home closings belonging to single-family homes climbed from 87.4% in May 2015 to 90.0% of closings in May 2016. At the same time, the share of new home closings belonging to attached units dropped to 10.0% of closings from 12.6% of closings.
For all new homes sold, the average unit size increased 11.2% year-over-year to 2,682 square feet in May 2016. An increase in both the average size and price of newly sold homes was also seen in April 2016 when the average size jumped 1.5% to 2,361 square feet. In April, the average size of new homes sold went from 2,326 square feet a year earlier to 2,361 square feet.
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. Foreclosures and REO closings, taken together, made up 2.1% of existing closings, lower than 3.1% a year earlier. The percentage of existing home closings involving foreclosures went from 1.1% in May 2015 to 0.2% in May 2016 and REO closings as a percentage of existing home closings stayed level at 2.0%.