New Construction Market Stays Strong in Third Quarter
The new construction market continues to progress nicely as we move into the third quarter of 2017.
May closed sales were up 5.8% from April and down 6.5% from May 2016. May pended sales were down 11.9% from the previous month and down 5% from May 2016.
The average sale price of a new construction home in May was $341,000, which is up $38,000 from last year! The average price per square foot for the month of May was $196, compared to $176 per square foot last year at this time.
The new construction market had 876 single-family homes for sale in the month of May, compared to 791 homes at this time last year. That’s an increase of 10.7% and works out to 5 months of inventory based on closed sales and 4.5 months of inventory based on pended sales.
For single-family homes, the average price was $349,000 in May, which is up $20,000 from last year. The average price per square foot for the month of May was $196, compared to $181 per square foot last year at this time.
In the multi-family new construction market, 228 units were for sale in the month of May, compared to 170 homes in May of 2016. That’s an increase of 34.1% and works out to 9.1 months of inventory based on closed sales and 6.9 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $283,000 in May, which is up $51,000 from last year. The average price per square foot for the month of May was $195, compared to $160 per square foot last year at this time.
The top new construction metro markets for single-family homes are: Ankeny, Waukee, West Des Moines, Bondurant, and Grimes.
The top new construction metro markets for multi-family homes are: Ankeny, Johnston, Waukee, Norwalk, Altoona.
Going into the second half of the year, new construction inventory levels will be important. The number of days on the market has increased over the last three months, which is due, in part, to a lack of resale inventory. It will be necessary to adjust the new construction inventory accordingly.
For more information on New Construction Market data, feel free to contact me!