Denver, CO - Recent New Home Sales Numbers Suggest Market Rise Slowing.
Posted on: May 06, 2012 09:23:34 AM
In February, there was an increase in sales of new homes in the Denver, CO market year-over-year, but the percentage edged up less than January 2012, suggesting the market may be leveling out. Sales rose 7.7% from a year earlier to 238, compared with a 28.0% boost in January from the year earlier.
A total of 3,650 new homes were sold during the 12 months that ended in February, up from 3,633 for the year that ended in January.
Following a year-over-year increase in January, sales of new and existing homes also increased year-over-year in February.
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Pricing and Mortgage Trends
The average price of new homes rose year-over-year in February to $398,539 per unit, a rise of 9.4%. This rise is smaller than the 10.7% lift in January year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In February 2012, the average mortgage size was $311,435, a 2.4% rise from a year earlier. In January 2012, average mortgage size on newly sold homes saw an 18.5% hike year-over-year from a year earlier. For new home sales, the percentage of the sale price that was being financed fell 5.3 percentage points year-over-year to 78.1% in February 2012. This was a swing downward after a 5.6 percentage point rise in January from a year earlier.
Denver, CO - Recent New Home Sales Numbers Suggest Market Rise Slowing.
Posted on: May 06, 2012 09:23:34 AM
In February, there was an increase in sales of new homes in the Denver, CO market year-over-year, but the percentage edged up less than January 2012, suggesting the market may be leveling out. Sales rose 7.7% from a year earlier to 238, compared with a 28.0% boost in January from the year earlier.
A total of 3,650 new homes were sold during the 12 months that ended in February, up from 3,633 for the year that ended in January.
Following a year-over-year increase in January, sales of new and existing homes also increased year-over-year in February.
Pricing and Mortgage Trends
The average price of new homes rose year-over-year in February to $398,539 per unit, a rise of 9.4%. This rise is smaller than the 10.7% lift in January year-over-year.
For newly sold homes, the average mortgage size saw a rise year-over-year along with new home prices. In February 2012, the average mortgage size was $311,435, a 2.4% rise from a year earlier. In January 2012, average mortgage size on newly sold homes saw an 18.5% hike year-over-year from a year earlier. For new home sales, the percentage of the sale price that was being financed fell 5.3 percentage points year-over-year to 78.1% in February 2012. This was a swing downward after a 5.6 percentage point rise in January from a year earlier.
Other Market Trends
As a share of new home sales, single-family home sales have climbed from last year while the share belonging to attached units has fallen. Single-family home sales jumped from 72.9% of new sales in February 2011 to 78.6% of sales in February 2012. At the same time, the share of new home sales belonging to attached units fell to 21.4% of sales from 27.1% of sales.
The average unit size of newly sold homes dipped 3.8% year-over-year to 2,145 square feet in February 2012. The average size of newly sold homes moved from 2,212 square feet in January 2011 to 2,441 square feet in January 2012.
Foreclosures and real estate owned (REO) sales remained a drag on the market. Out of all existing home sales, foreclosures combined with REO sales represented 48.3% of sales. In February 2011, they accounted for 55.9%. The percentage of existing home sales involving foreclosures slipped to 22.1% in February from 28.9% a year earlier and REO sales moved from 27.1% of existing home sales in February 2011 to 26.2% in February 2012.
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Source: Housing Intelligence