In June, there was an increase in closings of new homes in the Boulder, CO market year-over-year, but the percentage boost, which was less than May 2016, seemed to suggest market leveling. New home closings saw a 17.2% hike from a year earlier to 75. This came on the heels of a 37.0% climb year-over-year in May.
A total of 701 new homes were sold during the 12 months that ended in June, up from 690 for the year that ended in May.
As a percentage of overall housing closings, new home closings represented 11.0%. This is an increase on a percentage basis, as new home closings were 8.1% of total closings a year ago. For new and existing homes, closings slid in June after also declining in May year-over-year.
Pricing and Mortgage Trends
In June, the average value of new homes saw a 21.2% hike year-over-year as it grew to $594,495 per unit. This lift is higher than the 9.0% rise in May year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. In June 2016, the average mortgage size was $422,868, up 15.8% from a year earlier. In May 2016, average mortgage size rose 9.4% 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 82.8% in June 2015 to 84.0% of closings in June 2016. At the same time, the share of new home closings belonging to attached units declined to 16.0% of closings from 17.2% of closings.
There was a 1.6% surge year-over-year in the average unit size of newly sold homes to 2,694 square feet in June 2016. An increase in both the average size and price of newly sold homes was also seen in May 2016 when the average size rose 8.4% to 2,593 square feet. In May, the average size of new homes sold went from 2,391 square feet a year earlier to 2,593 square feet.
Foreclosures and real estate owned (REO) closings increased in June from a year earlier and did not appear to be dragging the market. Together, foreclosures plus REO closings represented 3.1% of existing home closings, up from 2.2% a year earlier. The percentage of existing home closings involving foreclosures went from 0.5% in June 2015 to 1.5% in June 2016 and REO closings as a percentage of existing home closings stayed level at 1.7%.