Closings of new homes in the Denver, CO market rose year-over-year in April, and the percentage rise was greater than March 2016, giving hints of improving market conditions. Closings increased 13.9% from a year earlier to 616. In comparison, new home closings in the same month last year saw a 3.4% rise year-over-year in March.
A total of 7,318 new homes were sold during the 12 months that ended in April, up from 7,243 for the year that ended in March.
Of 5,561 total closings, 616 were of new homes. This is a lift from 9.0% of closings a year earlier. For new and existing homes, closings slid in April after also declining in March year-over-year.
Pricing and Mortgage Trends
In April, the average price of newly sold homes increased year-over-year to $491,840 per unit, a 4.2% gain. This surge is smaller than the 6.7% hike in March year-over-year.
There was a rise year-over-year in the average mortgage size on new homes along with new home prices. It rose 1.8% in April from a year earlier to $380,422. In March 2016, average mortgage size gained 6.9% from a year earlier.
Other Market Trends
As a percentage of new home closings, attached unit closings have climbed from last year while single-family home closings have dropped. The share of new home closings belonging to attached units increased from 14.0% of closings in April 2015 to 20.5% of closings in April 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 79.5% of closings from 86.0% of closings.
For all new homes sold, the average unit size declined 4.6% year-over-year to 2,559 square feet in April 2016. This decline was opposite the price hike, a pattern also seen in March 2016 when the average size of newly sold homes fell 4.2% to 2,499 square feet. The average size of newly sold homes moved from 2,609 square feet in March 2015 to 2,499 square feet in March 2016.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in April, but did not look to be a burden on the market. Combined, foreclosures plus REO closings accounted for 4.8% of existing home closings, below 7.4% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.1% in April from 3.3% a year earlier while REO closings as a percentage of existing home closings fell to 2.7% from 4.1% a year earlier.