Market Progresses Nicely in the Second Quarter

The construction market for new homes continues to progress nicely in the 2nd quarter! May sales were up 12.4% over the previous month, and 2nd quarter sales were up 9.8% over the same quarter last year. May pended sales were down 3.6% over the previous month, but 2nd quarter pended sales were up 6.5% over the same quarter last year.

The overall new construction market had 791 single-family homes for sale in the month of May, compared to 759 homes at this time last year. That’s an increase of 4.2% and works out to 5.4 months of inventory based on closed sales and 4 months of inventory based on pended sales.

The average sale price of a new construction home in May was $303,000, which is up $5,000 from last year! The average price per square foot for the month of May was $177, compared to $170 per square foot last year at this time.

In the multi-family new construction market, 170 units were for for sale in the month of May, compared to 186 homes at this time last year. That’s a decrease of 9.1% and works out to 2.8 months of inventory based on closed sales and 4 months of inventory based on pended sales.

The average sale price of a new construction multi-family unit was $232,000 in May, which is up $39,000 from last year! The average price per square foot for the month of May was $160, compared to $137 per square foot last year at this time.

The top five single-family areas for YTD Pending and Closed sales were Ankeny, Waukee, Grimes, West Des Moines and Bondurant.

The top five multi-family areas were Ankeny, Grimes, Waukee, Johnston and Norwalk.

Interest rates continue to remain low and offer increased affordability to those looking to purchase in today’s market. We are nearing the end of our strong build-to-order season and now sales will start shifting strongly to builder’s with inventory / available homes that can be delivered in 75 days.

For more information on the New Construction Market data, feel free to contact me!