Posts from August 10th, 2017
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10
Condo Sales Set the Pace in New Construction Market
Regional MLSs report a YTD increase of 7% in new home sales, energized by an 18% increase in the sale of new condos. New house sales were up 1% for the same period. Sales increases were accompanied by an 11% decline in available inventory. Some of the lower inventory numbers can be explained by current sales of older inventory and the continued popularity of pre-sold homes at mid-to-higher price points. Pre-sold homes rarely show up as inventory and are often not reported to the MLSs until the time of closing.
Iowa City leads the region with a 5 to 1 ratio of existing vs. new home sales. The YTD regional average is 9.3 to 1.
Prices trends continue upward, as illustrated in the charts below:
|
Houses |
YTD 2017 |
YTD 2016 |
YTD 2015 |
|
Below $300K |
35% |
34% |
44% |
|
$300 - $400K |
36% |
43% |
32% |
|
Above $400K |
29% |
23% |
24% |
|
Condos |
YTD 2017 |
YTD 2016 |
YTD 2015 |
|
Below $200K |
43% |
43% |
66% |
|
$200 - $300K |
42% |
43% |
29% |
|
Above $300K |
15% |
14% |
5% |
Following is a brief summary of activity in major market areas:
CEDAR RAPIDS: This market segment reported the highest sales gain in the region at 22%. House sales were up 17% while condos were up 30%. These sales consumed some standing inventory, resulting in that figure dropping 17%. Nearly 50% of area house sales were below $300K and 56% of condos were under $200K, making Cedar Rapids the most affordable new home market in the region.
DUBUQUE: Sales are off to a slower start than last year, down 15% YTD. However, with inventory up 25%, both new houses and condos are more available in the market. Curiously, house sales below $225K are up 75%, but condo sales of the same price are down 40% YTD.
IOWA CITY: Condo sales are up 20% YTD, which has helped overcome a 5% drop in house sales and netted the area a 5% unit increase. The outlying areas combined for a 62% increase in sales, while Iowa City saw no change, North Liberty suffered a 14% loss and Coralville-Tiffin saw a 9% increase in unit sales. Iowa City and Coralville-Tiffin each accounted for 1/3 of the area market share in sales. However, Iowa City represents nearly 60% of all new homes inventory. Area inventory is up 5% vs. last year.
QUAD CITIES: Both house and condo sales showed modest gains, combining for a 3.5% increase, while inventory grew 4%. 50% of houses sold in Scott County were above $400K and 47% of condos sold were above $300K, making this the least affordable market segment in the region. Rock Island County sales, while increased, were primarily below $400K. There have been no MLS reported condo sales in over 12 months.
New developments across the region continue to reflect growing confidence on the part of builders, developers and consumers. It will never be more affordable to "Build Your Dream"!
