The state of the Des Moines-area housing market heading into 2017 can be associated with an extremely low inventory of single family dwellings in general, yet a steady uptick in the availability of new construction homes over the past several years.
A historic number of 9,277 single-family homes sold last year in the 18 communities I track with new construction comprising 16.3 percent of the total sold for 2016. For comparison, in both 2007 and 2010, 19 percent of total sales in the Des Moines market were tied to the development of new construction homes.
The resale market over the past year has been very hot due to a lack of new construction homes being built under a $250,000 price point. This trend in part can be attributed to the rising costs of land and building materials. There is a limited 2.5-months supply of single-family homes–1,910 active listings today compared with 2,546 at the end of 2013.
At the same time we are seeing active inventory of new construction homes on the rise over the past several years–to 775 listings today, compared with 606 at the end of 2013. New construction has a healthy six months supply, which is what is considered to be about perfect between a seller’s and buyer’s market.
My Single Family Housing Statistics for Q4 2016 provide a breakdown that allows for an assessment of different cities and price points across the Des Moines Metro. It may be smart for builders to consider that the lowest months worth of new construction supply currently sits in the $300,000-$349,000 price point range. With fewer single-family homes on the market, there are greater numbers of buyers of residential real estate in search of the ideal lot and builder to meet their family’s specific needs.
More information in regard to the availability of lots and new developments can be found on my new-and-improved website at www.NewConstructionSpecialistDSM.com. Builders looking for lots should take a peek at the Development & Lots page. If you are an end-user on the hunt for a home, please contact me directly as my door is always open to discussing the process of buying or building in Central Iowa communities!
As always, I look forward to helping meet your unique needs.
I am a Residential REALTOR® and Certified New Construction Sales Professional who specializes in helping homebuyers locate a suitable lot, secure a qualified builder, and pick a perfect floor plan to match their unique tastes or personal style. After listening and understanding the needs of my clients, I offer appropriate feedback and credible data that help buyers and seller make informed decisions in regards to real estate transactions. Follow me on Facebook, Twitter and LinkedIn.