In May, closings of new homes rose year-over-year in the Denver, CO market, and the percentage hike was an improvement from April 2016, suggesting the market may be gaining momentum. New home closings saw a 24.4% jump from a year earlier to 663. In comparison, new home closings in the same month last year saw a 16.5% hike 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.
As a percentage of overall housing closings, new home closings represented 10.7%. This is a boost from 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
The average price of new homes grew year-over-year 1.4% in May to $492,903 per unit. This gain is smaller than the 4.2% rise 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 on newly sold homes saw a 1.7% lift year-over-year from a year earlier.
Other Market Trends
Closings of attached units, as a percentage of new home closings, have grown from last year while closings of single-family homes have slumped. Attached unit closings gained 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.
The average unit size of newly sold homes fell 1.7% year-over-year to 2,616 square feet in May 2016. For newly sold homes, an average size drop contrasting with an average price rise was also seen in April 2016 when the average size of newly sold homes dropped 5.0% to 2,547 square feet. In April, the average size of new homes sold went from 2,681 square feet a year earlier to 2,547 square feet.
Foreclosures and real estate owned (REO) closings continued to decline 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 4.5% of existing closings, lower than 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.