Will Market Outperform to Overcome the Slow Start?
July Pending Sales rally to finish 14.1% ahead of July 2018. The 2019 New Construction Market appears to have that never quit mentality. Will the market outperform historical sales in the 3rd and 4th quarters, to overcome the slow start to the year?
New construction market results midway through the third quarter indicate July closed sales were down 2.1% from June and down 1.4% from July 2018. July pended sales were up 9.4% from the previous month and up 14.1% from last year at this time.
There were 1,289 new construction homes for sale in July, which is down 2.1% from June and down 3.4% from last year.
The average sale price of a new construction home in July was $318,000, which is up $7,000 from last year at this time. The average price per square foot for July was $195, which is up $4 from last year at this time.
The new construction market had 988 single-family homes for sale in the month of July, compared to 1,058 homes at this time last year. That’s a decrease of 6.2% and works out to 7.1 months of inventory based on closed sales and 5.9 months of inventory based on pended sales.
For single-family homes, the average price in July was $336,000, which is up $11,000 from last year. The average price per square foot for the month of July was $201 compared to $203 per square foot last year at this time.
In the multi-family new construction market for the Des Moines metro area, 293 units were for sale in the month of July, compared to 277 homes in same month of 2018. That’s an increase of 5.8% and works out to 6.2 months of inventory based on closed sales and 7.3 months of inventory based on pended sales.
The average sale price of a new construction multi-family unit was $258,000 in July, which is up $4,000 from last year. The average price per square foot for the month of July was $173, compared to $172 per square foot last year at this time.
The top new construction metro markets for the month of July 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, Waukee, Norwalk, West Des Moines and Downtown.
For more information on New Construction Market data, feel free to contact me!