New home closings rose year-over-year in August in the Denver, CO market, but with a less pronounced percentage hike than July 2015, there are suggestions of market stabilization. New home closings saw a 5.0% jump from a year earlier to 503. This came after a 33.8% rise year-over-year in July.
A total of 6,517 new homes were sold during the 12 months that ended in August, up from 6,493 for the year that ended in July.
Compared to a year earlier, new home closings as a percentage of total closings stayed the same at 7.5%. Following a year-over-year increase in July, closings of new and existing homes also jumped year-over-year in August.
Pricing and Mortgage Trends
In August, the average value of new homes saw a 13.3% bump year-over-year as it grew to $499,504 per unit. This hike is smaller than the 18.9% boost in July year-over-year.
The average mortgage size on new homes moved north year-over-year along with new home prices. In August 2015, the average mortgage size was $384,935, a 11.6% bump from a year earlier. In July 2015, average mortgage size on newly sold homes saw a 16.6% gain 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 jumped from 84.6% in August 2014 to 87.5% of closings in August 2015. Conversely, the share of new home closings belonging to attached units sank to 12.5% of closings from 15.4% of closings.
The average unit size of newly sold homes slid 9.4% year-over-year to 2,352 square feet in August 2015. The average size of newly sold homes moved from 2,548 square feet in July 2014 to 2,584 square feet in July 2015.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in August, but did not look to be a burden on the market. Combined, foreclosures plus REO closings represented 5.0% of existing home closings, below 8.1% a year earlier. The percentage of existing home closings involving foreclosures slid to 2.1% in August from 4.5% a year earlier and REO closings moved from 3.6% of existing home closings in August 2014 to 2.9% in August 2015.