End of the Year Projections

The last few months of 2018 have proven to be sluggish in comparison to the same time last year. 2018 is projected to close out with single family down about 10% in units, while multi-family was up 30% in units.

Looking at the overall new construction market as we move toward the end of the year, November closed sales were down 18.5% from October and down 26.7% from November 2017. November pended sales were down 25.9% from the previous month and down 21.9% from November 2017.

There were 1,471 new construction homes for sale in November, which is up 0.3% from October and up 11.1% from last year.

The average sale price of a new construction home in November was $323,000, which is down $4,000 from last year at this time. The average price per square foot for the month of November was $195, which is up $5 from last year at this time.

The new construction market had 1,156 single-family homes for sale in the month of November, compared to 1,037 homes at this time last year. That’s an increase of 11.5% and works out to 10.6 months of inventory based on closed sales and 15 months of inventory based on pended sales.

For single-family homes, the average price in November was $334,000, which is down $5,000 from last year. The average price per square foot for the month of November was $201, compared to $191 per square foot last year at this time.

In the multi-family new construction market, 307 units were for sale in the month of November, compared to 279 homes in November of 2017. That’s an increase of 10% and works out to 14 months of inventory based on closed sales and 14.6 months of inventory based on pended sales.

The average sale price of a new construction multi-family unit was $261,000 in November, which is down $5,000 from last year. The average price per square foot for the month of November was $156, compared to $182 per square foot last year at this time.

The top new construction metro markets for single-family homes are: Ankeny, Waukee, Urbandale, Grimes, and Norwalk.

The top new construction metro markets for multi-family homes are: Ankeny, Waukee, West Des Moines, Norwalk, and Indianola.

With the recent bump in rate by the Fed, rates should close out 2018 just shy of 5%, which is up 1% from the beginning of the year; however, historically speaking, it’s still very attractive.

If you would like even, more detailed information on New Construction Market data, feel free to contact me!