New home closings dropped year-over-year in November in the Denver, CO market, moving south after a lift in October 2015. There was a 3.5% decline in new home closings from a year earlier. This came on the heels of a 1.3% jump year-over-year in October.
A total of 6,740 new homes were sold during the 12 months that ended in November, down from 6,760 for the year that ended in October.
Out of all housing closings, new home closings made up 12.5%. A year ago, new home closings made up 12.1%. Closings of new and existing homes saw a drop year-over-year in November after remaining steady in October year-over-year.
Pricing and Mortgage Trends
The average price of new homes was $473,107 per unit in November, up 7.9%from a year earlier. This bump is smaller than the 10.9% lift in October year-over-year.
For newly sold homes, the average mortgage size climbed year-over-year along with new home prices. In November 2015, the average mortgage size was $376,193, up 10.7% from a year earlier. In October 2015, average mortgage size on newly sold homes saw a 10.7% surge 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 76.4% in November 2014 to 84.7% of closings in November 2015. Meanwhile, attached units as a percentage of all new home closings declined to 15.3% of closings from 23.6% of closings.
For all new homes sold, the average unit size climbed 2.0% year-over-year to 2,566 square feet in November 2015. The average size of newly sold homes moved from 2,565 square feet in October 2014 to 2,229 square feet in October 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in November, but did not appear to be dragging the market. Together, foreclosures plus REO closings represented 6.7% of existing home closings, down from 9.9% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.9% in November from 4.7% a year earlier while REO closings as a percentage of existing home closings fell to 3.8% from 5.2% a year earlier.