2019 New Construction Market Rallied Its Way Back

Statically speaking, the 2019 New Construction unit sales look to close out the year relatively equal to 2018 closings. But as we all know, there were many factors that played a role in reaching that goal. Some are sustainable and others are not. For now, enjoy the accomplishments of a market that rallied its way back from a first half deficit.

Looking at the overall new construction market as we enter 2019, November closed sales were down 9.9% from October and up 20.6% from November 2018. November pending sales were down 19.1% from the previous month and up 40% from last year at this time.

There were 1,324 new construction homes for sale in November, which is up 4.4% from October and down 10% from last year.

The average sale price of a new construction home in November was $324,000, which is up $1,000 from last year at this time. The average price per square foot for November was $198, which is up $3 from last year at this time.

The new construction market had 945 single-family homes for sale in the month of November, compared to 1,156 homes at this time last year. That’s a decrease of 18.3% and works out to 7.3 months of inventory based on closed sales and 8 months of inventory based on pended sales.

For single-family homes, the average price in November was $341,000, which is up $3,000 from last year. The average price per square foot for the month of November was $203, compared to $201 per square foot last year at this time.

In the multi-family new construction market, 371 units were for sale in the month of November, compared to 307 homes in November of 2018. That’s an increase of 20.8% and works out to 11.2 months of inventory based on closed sales and 17.7 months of inventory based on pended sales.

The average sale price of a new construction multi-family unit was $249,000 in November, which is down $12,000 from last year. The average price per square foot for the month of November was $175, 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, Norwalk, and Altoona.

The top new construction metro markets for multi-family homes are: Ankeny, West Des Moines, Waukee, Norwalk. and Johnston.

For more information on New Construction Market data, feel free to contact me!