New home closings dropped year-over-year in July in the Fort Collins, CO market, but compared with June 2016, the percentage fall was less steep, hinting the market may be strengthening. New home closings saw a 4.3% fall from a year earlier to 110. This followed a 5.1% decline year-over-year in June.
A total of 1,486 new homes were sold during the 12 months that ended in July, down from 1,491 for the year that ended in June.
New home closings accounted for 13.7% of overall housing closings. A year earlier, new home closings represented 12.8% of total closings. Following a year-over-year decline in June, closings of new and existing homes also dropped year-over-year in July.
Pricing and Mortgage Trends
The average price of newly sold homes gained year-over-year 10.7% in July to $440,915 per unit. This rise is higher than the 6.4% boost in June year-over-year.
For newly sold homes, the average mortgage size saw a bump year-over-year along with new home prices. In July 2016, the average mortgage size was $322,641, up 10.3% from a year earlier. In June 2016, average mortgage size on newly sold homes saw a 2.2% gain year-over-year 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 grew from 82.6% in July 2015 to 90.0% of closings in July 2016. At the same time, the share of new home closings belonging to attached units slid to 10.0% of closings from 17.4% of closings.
For all new homes sold, the average unit size climbed 2.2% year-over-year to 2,531 square feet in July 2016. The average size of newly sold homes moved from 2,595 square feet in June 2015 to 2,008 square feet in June 2016.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in July, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 2.6% of existing closings, lower than 3.8% a year earlier. The percentage of existing home closings involving foreclosures went from 1.5% in July 2015 to 0.7% in July 2016 and REO closings moved from 2.3% of existing home closings in July 2015 to 1.9% in July 2016.