New Construction Market Remains Strong as the Year Ends

As 2017 comes to a close, the new construction market remains strong with inventory levels up from 2016.

November closed sales were down 1.7% from October but up 14.4% from November 2016. November pended sales were down 15.8% from the previous month but up 13.9% from November of 2016.

There were 1,324 new construction homes for sale in November, which is down 0.2% from October and up 13.2% from last year.

The average sale price of a new construction home in November was $327,000, which is down $14,000 from last year at this time. The average price per square foot for the month of November was $189, compared to $191 per square foot last year at this time.

The new construction market had 1,037 single-family homes for sale in the month of November, compared to 930 homes at this time last year. That’s an increase of 11.5% and works out to 7.1 months of inventory based on closed sales and 9.9 months of inventory based on pended sales.

For single-family homes, the average price in November was $350,000, which is down $4,000 from last year. The average price per square foot for the month of November was $191, compared to $194 per square foot last year at this time.

In the multi-family new construction market, 279 units were for sale in the month of November, compared to 229 homes in November of 2016. That’s an increase of 21.8% and works out to 9.6 months of inventory based on closed sales and 16.4 months of inventory based on pended sales.

The average sale price of a new construction multi-family unit was $260,000 in November, which is up $8,000 from last year. The average price per square foot for the month of November was $180, compared to $178 per square foot last year at this time.

The top new construction metro markets for single-family homes are: Ankeny, Waukee, Bondurant, West Des Moines and Grimes.

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

Interest rates are still holding steady as we move forward into 2018. For more detailed information on New Construction Market data, feel free to contact me!

Kelly Gibson is the New Homes Manager at Iowa Realty. Kelly can be reached at 515-453-6706 or KLGibson@IowaRealty.com.