New Construction Market Starts Out Strong in 2017

The new construction market has had a strong start in the first quarter of 2017!

January closed sales were down 26.1% from the previous month and up 6.6% over the same month last year. However, January pended sales were up 73.9% over the previous month and up 7% over the same month last year.

The average sale price of a new construction home in January was $340,000, which is up $15,000 from last year! The average price per square foot for the month of January was $191, compared to $177 per square foot last year at this time.

The overall new construction market had 953 single-family homes for sale in the month of January, compared to 840 homes at this time last year. That’s an increase of 13.5% and works out to 9.9 months of inventory based on closed sales and 7.6 months of inventory based on pended sales.

For single-family homes, the average price was $362,000 in January, which is up $23,000 from last year. The average price per square foot for the month of January was $203, compared to $178 per square foot last year at this time.

In the multi-family new construction market, 242 units were for sale in the month of January, compared to 222 homes at this time last year. That’s an increase of 9% and works out to 15.1 months of inventory based on closed sales and 9 months of inventory based on pended sales.

The average sale price of a new construction multi-family unit was $255,000 in January, which is up $17,000 from last year. The average price per square foot for the month of January was $174, compared to $167 per square foot last year.

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

The top new construction metro markets for multi-family homes are: Altoona, Ankeny, Grimes, Johnston and Waukee.

A challenge that we will face is resale listing inventory, as new construction sales are currently dependent on move-up buyers. In January, there were 1,709 resale homes on the market, which is a historic low. However, the spring market is rapidly approaching, which customarily sees a large influx of resale listings.

Overall, the increase in sales and inventory over the same time in 2016 leads me to believe the 2017 new construction market is positioned well to build upon these metrics.
For more detailed information on New Construction Market data, contact me!