New Construction Market Continues Growth in Q1
The New Construction Market continues to grow through the first quarter and looks to be starting out strong in the second quarter as well!
March sales were up 9.8% over the previous month, and first quarter sales were up 3.3% over the same quarter last year. March pended sales were up 25% over the previous month and first quarter pended sales were up 11.9% over the same quarter last year.
The overall new construction market had 985 single-family homes for sale in the month of March, compared to 944 homes at this time last year. That’s an increase of 4.3%. That works out to 8 months of inventory based on closed sales and 3.9 months of inventory based on pended sales.
The average sale price of a new construction home in March was $300,000, which is up $3,000 from last year! The average price per square foot for the month of March was $173, compared to $168 per square foot last year at this time.
In the multi-family new construction market, 196 units were for sale compared to 183 last month, an increase of 7.1%. Sales were down 52% from last month and down 10.3% from last quarter. However, pended sales were up 88.9 percent over last month and 6.3 percent over the same quarter last year. That works out to 16.3 months of inventory based on closed sales and 3.8 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $218,000 in March and the average price per square foot was $156.
The single-family new construction market had 785 homes for sale compared to 753 from last month, an increase of 4.2%! March sales were up 29.1% from the previous month and first quarter sales were up 6.7% over the same quarter last year.
March Pended sales were up 15.1% over last month and first quarter sales were up 12.9% over the same quarter last year. That works out to 7.1 months of inventory based on closed sales and 4 months of inventory based on pended sales.
The average sale price of a new construction single-family home was $309,000 in March and the average price per square foot was $174.
The top five single-family areas for the first quarter were Ankeny, Waukee, Grimes, Adel, and West Des Moines. The top five multi-family areas were Ankeny, West Des Moines, Waukee, Altoona, and Indianola.
Rates continue to hold steady at around 3.625% with no immediate signs of changing.
Given the following factors—low resale inventory levels, adequate new construction inventory, low rates, low unemployment, mild weather—the second quarter of 2016 should prove to provide continued upward gains in our New Construction Market.
For more detailed information on the New Construction Market data, feel free to contact me!