New Construction Market Still Remains Strong

The new construction market continues to remain strong through the third quarter and looks to be starting out strong in the fourth quarter as well!

In September, closed sales were up 15.1% and pending sales were down a little at 6.7% over September of 2014.

The average sale price of a new construction home in September was $307,000, which is up $9,000 from last year! The average price per square foot for the month of September was $178, compared to $170 to last year at this time.

The overall market had 834 single-family homes for sale in the month of September, which is up 2.5% compared to last month and down 1.4% compared to last year at this time.

The number of single-family homes closed in the month of September was 117 units, which is down 16.4% compared to the last month and up 20.6% compared to one year ago. 96 single-family units went pending in the month of September, which is down 29.4% compared to last month and down 10.3% compared to last year.

The overall multi-family market had 183 units for sale in the month of September, which is down 5.7% compared to the last month and down 3.2% compared to one year ago.

Multi-family homes had 20 closed units in September, which was the same as compared to last month and down 9.1% compared to last year. 29 units went pending in September, which is up 20.8% compared to the last month and up 7.4% compared to last year!

As of September 30, the overall market has had a total of 1,431 units closed, with 258 of those being multi-family units and 1,173 single-family units.

For single-family homes, year-to-date, Ankeny came in at number one with 314 units closed, Waukee with 196, Grimes 111, Urbandale 75 and West Des Moines with 73 units closed.

Multi-family units, year-to-date, Ankeny took the top spot at 72 units, West Des Moines 65, Norwalk 22, Johnston 20 and Waukee with 13 units closed.

Interest rates have held steady over the course of 2015 and we can expect the same for the remainder of the year. However, agents and builders can expect a marginal increase in rates next year.

This would be an appropriate time for builders to evaluate their inventory position to ensure diversification in both, product type, and pricing as they prepare for 2016 market conditions.

For more detailed information on new construction market data, please feel free to contact me!