Off To A Strong Start!
2020 Pending Sales are off to a strong start! January Pending Sales are up 31.3% over January 2019, and up 11.2% over the same time in 2018.
Now let’s look at the overall new construction market numbers. January closed sales were down 46.5 % from December and up 3.1 % from January 2019. January pended sales were up 36% from the previous month and up 31.3% from last year at this time.
There were 1,338 new construction homes for sale in January, which is down 1.2% from December and down 11.4% from last year.
The average sale price of a new construction home in January was $323,000, which is down $45,000 from last year at this time. The average price per square foot for January was $198, which is down $3 from last year at this time.
The new construction market had 944 single-family homes for sale in the month of January, compared to 1,179 homes at this time last year. That’s a decrease of 19.9% and works out to 10.7 months of inventory based on closed sales and 6.7 months of inventory based on pended sales.
For single-family homes, the average price in January was $331,000, which is down $17,000 from last year. The average price per square foot for the month of January was $200, compared to $203 per square foot last year at this time.
In the multi-family new construction market, 387 units were for sale in the month of January, compared to 324 homes in January of 2019. That’s an increase of 19.4% and works out to 35.2 months of inventory based on closed sales and 7.9 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $261,000 in January, which is down $7,000 from last year. The average price per square foot for the month of January was $176, compared to $173 per square foot last year at this time.
The top new construction metro markets for single-family homes are: Ankeny, Waukee, Grimes, Altoona and Norwalk.
The top new construction metro markets for multi-family homes are: Waukee, Ankeny, West Des Moines, Norwalk and Pleasant Hill.
Positives heading into 2020. The stock market remains strong. Average inventory prices are falling. 15 year and 30 year rates are still very attractive. Iowa unemployment rate is holding around 2.7%. Inventory levels are better aligned with demand, vs this time last year. These indicators should help allow for a strong and profitable Q1 and Q2.
For more information on New Construction Market data, feel free to contact me!