In January and February, the market performed at a disappointing pace compared to the same months last year. However, March and April sales have been stronger and are assisting in closing the year-over-year gap. Looking at the overall new construction market through March – Units closed out at -9.5% and Volume was down -6.6% respectively year-over-year.
March closed sales were up 46.7% from last month and down 9.2 % from March 2018. March pended sales were up 39.8% from the previous month and down 12.1% from last year at this time.
There were 1,327 new construction homes for sale in March, which is down 5.9% from previous month and down .7% from last year.
The average sale price of a new construction home in March was $317,000, which is up $3,000 from last year at this time. The average price per square foot for March was $196, which is up $10 from last year at this time.
The new construction market had 1,037 single-family homes for sale in the month of March, compared to 1,044 homes at this time last year. That’s a decrease of .7% and works out to 7.9 months of inventory based on closed sales and 5.8 months of inventory based on pended sales.
For single-family homes, the average price in March was $323,000, which is down $7,000 from last year. The average price per square foot for the month of March was $199, compared to $186 per square foot last year at this time.
In the multi-family new construction market, 283 units were for sale in the month of March, compared to 285 homes in the same month of 2018. That’s a decrease of 1% and works out to 10.9 months of inventory based on closed sales and 6.4 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $292,000 in March, which is up $35,000 from last year. The average price per square foot for the month of March was $181, compared to $182 per square foot last year at this time.
The top new construction metro markets for single-family homes are: Ankeny, Waukee, Urbandale, Norwalk and West Des Moines.
The top new construction metro markets for multi-family homes are: Waukee, Norwalk, Ankeny, Altoona and Downtown.
Rates remain low, 4% range for a 30yr fixed, and all indicators lead us to believe the Fed will hold rates in the upcoming session. Although the market is off to a slow start this year, due to weather, my forecast is we should be equal to 2018 sales by the end of the second quarter and the opportunity will be there to pull ahead of YOY sales in the 3rd and 4th quarters.
Inventory levels will need to, and should be, evaluated at the end of the second quarter in preparation of the coming election year. Keep your mud boots close folks, because there may be a lot of political mud-slinging in 2020.
For more information on New Construction Market data, feel free to contact me!