New Construction Market Stays Strong in 2nd Quarter
The new construction market continues to be strong as we move into the second quarter of 2017!
March closed sales were up 69.7% from February and up 29.4% over March 2016. March pended sales were up 9.1% over the previous month and up 1.5% over March 2016.
The average sale price of a new construction home in March was $327,000, which is up $25,000 from last year! The average price per square foot for the month of March was $188, compared to $174 per square foot last year at this time.
The new construction market had 922 single-family homes for sale in the month of March, compared to 785 homes at this time last year. That’s an increase of 17.5% and works out to 5.9 months of inventory based on closed sales and 4 months of inventory based on pended sales.
For single-family homes, the average price was $345,000 in March, which is up $33,000 from last year. The average price per square foot for the month of March was $191, compared to $176 per square foot last year at this time.
In the multi-family new construction market, 234 units were for sale in the month of March, compared to 196 homes in March of 2016. That’s an increase of 19.4% and works out to 8.1 months of inventory based on closed sales and 6.7 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $235,000 in March, which is up $17,000 from last year. The average price per square foot for the month of March was $160, compared to $155 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 Urbandale.
The top new construction metro markets for multi-family homes are: Ankeny, Johnston, Waukee, Norwalk and Grimes.
Although the first quarter remained very strong with 15% growth over the same quarter last year, there are a few factors to consider when looking into the future. Interest rates are hovering just above 4.2%, but there is a pending possibility of increases, and the resale inventory continues to be low. The remainder of the year will be dependent upon an influx of resale listings if we are to support our new construction segment at our current pricing.
For more information on New Construction Market data, feel free to contact me!