Third Quarter Results Are Now In
As we close out the third quarter, September closed sales were up 5.9% from August and up 3.6% from September 2016. September pended sales were down 12.2% from the previous month and down 0.8% from September 2016.
There were 1,256 new construction homes for sale in September, which is up 8.2% from August and up 12.2% from last year.
The average sale price of a new construction home in September was $343,000, which is up $22,000 from last year! The average price per square foot for the month of September was $196, compared to $184 per square foot last year at this time.
The new construction market had 981 single-family homes for sale in the month of September, compared to 860 homes at this time last year. That’s an increase of 14.1% and works out to 5.8 months of inventory based on closed sales and 10.1 months of inventory based on pended sales.
For single-family homes, the average price was $348,000 in September, which is up $12,000 from last year. The average price per square foot for the month of September was $198, compared to $189 per square foot last year at this time.
In the multi-family new construction market, 267 units were for sale in the month of September, compared to 216 homes in September of 2016. That’s an increase of 23.6% and works out to 9.9 months of inventory based on closed sales and 8.6 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $276,000 in September, which is up $47,000 from last year. The average price per square foot for the month of September was $173, compared to $156 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 and Altoona.
Rates continue to hold steady around 4%. Land, labor, and material prices continue to rise at a rate far greater than wage increases. Thus, design, finish levels and overall affordability will play a significant role moving into 2018.