New Construction Market Still Strong in 3rd Quarter!
In July, closed sales were down 2.4% but pending sales were up 19.1% over July of 2015. Closed sales were up 8.2% and pended sales were up 8.6% over the same quarter last year.
The average sale price of a new construction home in July was $323,000, which is up $11,000 from last year! The average price per square foot for the month of July was $171, compared to $118 last year at this time.
The new construction market had 823 single-family homes for sale in the month of July, compared to 801 homes at this time last year. That’s an increase of 2.7% and works out to 4.6 months of inventory based on closed sales and 6.3 months of inventory based on pended sales.
Single-family homes spent an average of 168 days on the market in July compared to 117 last year.
In the multi-family new construction market, 156 units were for sale in the month of July, compared to 203 homes at this time last year. That’s a decrease of 23.2% and works out to 5.6 months of inventory based on closed sales and 5.2 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $248,000 in July, which is up $32,000 from last year! The average price per square foot for the month of July was $168, compared to $153 per square foot last year at this time.
Multi-family units spent an average of 187 days on the market in July compared to 147 last year.
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, Waukee, Grimes, Johnston and Norwalk.
Interest rates, inventory selection and visitor traffic remain very positive, all of which are very strong indicators of what the fourth quarter will hold for our industry. If the value proposition continues to meet the buyer’s expectation, the market should continue to show strength and growth in the fourth quarter.
For more detailed information on the New Construction Market data, contact me!