Monthly Market Reports

Group One Sotheby's International Realty August Market Report

A BUILDER'S DREAM

This market is every builder's dream. There is virtually no inventory (20 days of finished new homes and 48 days of resale homes). But there is plenty of demand. And the market is set up to almost guarantee success for any competent builder - except perhaps for the availability of reasonably priced building lots. (There's always a catch, right?)

New home sales comprise almost 30% of the market, compared to 20% three years ago.  Builders have done well and continue to play an important role in this market.

The overall market continues to have healthy demand and is held back only because of limited inventory.  Year-to-date sales are up only 2% compared to last year but August's sales were 12% higher than last August and pending sales were also 12% higher than they were at the end of last August, so the market seems to be picking up a little over last year's pace.

Prices continue to rise, of course, and our average and median prices are higher than they were at their previous peak in 2007. The median price of new homes for the trailing 12 months is $324,065, 39% higher than the median price for resale homes at $233,000.

Below are charts that show market statistics for the trailing 12 months of new home sales.

 

 

Posted by Brad Barker at 9/7/2017 3:23:00 PM
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