New home closings sank year-over-year in December in the Boulder, CO market, and the market seemed to be worsening in light of the percentage drop steeper than November 2015. Closings dropped 43.6% from a year earlier to 57. This was after the housing market saw a 11.1% fall year-over-year in November.
A total of 652 new homes were sold during the 12 months that ended in December, down from 696 for the year that ended in November.
As a percentage of overall housing closings, new home closings made up 12.6%. This is a decline 21.0% of closings a year earlier. For new and existing homes, closings sank in December after also declining in November year-over-year.
Pricing and Mortgage Trends
In December, the average price of newly sold homes gained 21.3% year-over-year to $542,709 per unit. This hike is smaller than the 50.1% rise in November year-over-year.
There was a boost year-over-year in the average mortgage size on new homes along with new home prices. Average mortgage size rose 14.7% to $381,812 in December from a year earlier. Average mortgage size climbed 39.8% in November 2015 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. Single-family home closings increased from 57.4% of new closings in December 2014 to 82.5% of closings in December 2015. Meanwhile, attached units as a percentage of all new home closings fell to 17.5% of closings from 42.6% of closings.
There was a 12.6% fall year-over-year in the average unit size of newly sold homes to 2,151 square feet in December 2015. In November, the average size of new homes sold went from 2,596 square feet a year earlier to 3,522 square feet.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in December, but did not appear to be dragging the market. Foreclosures and REO closings, taken together, made up 4.6% of existing closings, lower than 5.5% a year earlier. The percentage of existing home closings involving foreclosures went from 2.1% in December 2014 to 1.5% in December 2015 and REO closings moved from 3.4% of existing home closings in December 2014 to 3.0% in December 2015.