With a total of 1,961 active listings of single family homes, translating into a 2.5 months supply, this LOW LEVEL of inventory reflects a trend we’ve been tracking over the past five years, and appeared to continue in Q1 2018.
Heading into March, there were 1,257 pending sales of single family homes in the Des Moines Metro, or 74 fewer pending sales than a year ago. The TOTAL MONTHS SUPPLY – six months is considered to be indicative of a stable market – has hovered around two to three months over the past several years, and continues in that range today.
The overall inventory has continued to drop and listings of NEW CONSTRUCTION homes are growing. Notably, of the total number of active listings on the market, 46 percent of these available homes fell into the new construction category, representing a significantly greater percentage of the total inventory.
Today, we see 1,257 PENDING SALES of single family homes, or 74 fewer than a year ago. And there are 336 new construction single family homes pending, which is about identical to this time last year. Breaking down the new construction numbers, we see a 6.7 months supply of inventory, compared to 6.2 months a year ago. While this is a healthy supply and markedly higher than the inventory of existing homes, it is not too alarming given the pace at which it has been slowly creeping up in recent years.
The average sales price of new construction homes is a common topic of discussion among builders and REALTORs in the current seller’s market, especially as it relates to price points that fall below where builders are able to provide adequate inventory. During the past three years, we have actually seen a more gradual increase in inflation, of around 3 to 4 percent, which is more typical for the BUILDING INDUSTRY. In 2011, we were building homes with an average new construction price of $245,000. In comparison, the average price of a new construction home increased in 2017 by about $100,000 to $349,000.
Last year, there were 9,438 sales of single family homes tracked on the local MLS and 1,680 NEW HOMES sold. Since 2010, every year has been a better year and it was another record for total sales again in 2017. It’s always fun to take a look at what communities in the Des Moines Metro are seeing the most new construction sales tracked through the MLS. According to the data, there were six cities that sold more than 100 new homes in 2017.
Moving forward, the SMART MONEY is on determining which areas and price points are best suited to meet the needs of potential buyers as the spring building and house hunting season gets underway.
My door is open and I’m always up for discussion regarding my latest DES MOINES METRO HOUSING STATISTICS. Also please click to view SLIDES from my presentation on Friday, March 2, during the 11th Annual Builder and Developer Luncheon.
For additional information on the availability of single-family lots and unique CENTRAL IOWA housing communities, you can contact me directly at Kalen@PeoplesCompany.com.
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.