Closing Out the Summer New Construction Market
As we close out the summer and move into the fall season, July closed sales were down 17.5% from June and up 13.4% from July 2017. July pended sales were down from the previous month by 3.3% but up 3.5% from July 2017.
There were 1,335 new construction homes for sale in July, which is up 0.6 % from June and up 18% from last year.
The average sale price of a new construction home in July was $311,000, which is down $16,000 from last year at this time. The average price per square foot for the month of July was $191, which is the same as last year at this time.
The new construction market had 1,053 single-family homes for sale in the month of July, compared to 1,049 homes at this time last year. That’s an increase of 0.4% and works out to 6.2 months of inventory based on closed sales and 7.4 months of inventory based on pended sales.
For single-family homes, the average price in July was $325,000, which is down $11,000 from last year. The average price per square foot for the month of July was $194, compared to $191 per square foot last year at this time.
In the multi-family new construction market, 269 units were for sale in the month of July, compared to 268 homes in June of 2017. That’s an increase of 0.4% and works out to 6.3 months of inventory based on closed sales and 8.7 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $254,000 in July, which is down $16,000 from last year. The average price per square foot for the month of July was $176, compared to $185 per square foot last year at this time.
The top new construction metro markets for single-family homes are: Ankeny, Waukee, Urbandale, Grimes, and West Des Moines
The top new construction metro markets for multi-family homes are: Ankeny, Waukee, West Des Moines, Norwalk, and Indianola.
2018 has proved to be an interesting rising market. We started the year out with 30-year rates around 3.875, and they have crept up to 4.5%. At least one more marginal increase is anticipated to occur yet this fall, which should end 2018 with rates around 4.75% to 5%. Historically, this is still a very good rate but could create some slowing in sales as potential buyers adjust to the new norms.
For more details on New Construction Market data, feel free to contact me!