Even record cold, snow and frost depths were unable to dampen the spirits and efforts of some buyers and builders this winter. Despite many weather related schedule delays, overall regional new home sales managed a 1% increase over the same period last year, accounting for 1 in every 9.4 home sales during the first quarter. New home starts for the same period are detailed in the chart below.
There was a 13% increase in regional inventory compared with the same time last year. Houses represent 74% of new home sales for the period and 57% of current inventory, while condos comprise 26% of sales and 43% of inventory.
New house prices continued a steady rise during the quarter, as shown below:
Below $300,000 = 44% of house sales
$300,000 – $400,000 = 35% of house sales
Above $400,000 = 21% of house sales
Below $300,000 = 44% of house sales
$300,000 – $400,000 = 35% of house sales
Above $400,000 = 21% of house sales
These figures differ greatly from the 60% of house sales below $300,000 and the 15% above $400,000 reported in the first quarter last year, as ranch style homes remained the strong regional preference. In new condo sales, over 74% of sales fell below $200,000.
DUBUQUE: The Dubuque area reported 14% more new house sales than 2013, but condo sales remained non-existent in the market. Dubuque saw a small increase in new house inventory, but available condo inventory has nearly tripled since the same time last year.
CEDAR RAPIDS: While overall unit sales totals were down 13% vs. 2013, house sales were the main cause – dropping 20%, while condo sales remained unchanged. Area inventories of available new houses are down 1% vs. last year, while condo inventory is up 8%.
IOWA CITY: Area sales were up 13% over the first quarter last year, with strong house sales showing an 82% increase, from 17 to 31 units. Unfortunately, condo sales for the period dropped by 43% compared with last year. Both house and condo inventories in the market are 20% above this time in 2013, reflecting the confidence of builders and buyers.
QUAD CITIES: As Scott County unit sales grew by 10%, increases were reported in both house and condo sales. Rock Island County sales remained unchanged, at 1, from the first quarter of 2013 continuing to reflect a stagnant new homes market for that area. In Scott County, the new house inventory increased by 28% and condo inventory increased by 22% compared to this time last year. Conversely, Rock Island County inventories are down by a combined 70% vs. last year, helping to perpetuate a lack of sales for that segment of the market. It is noteworthy that less than 40% of all sales in the QCA metro area were ranch style houses.
On a very positive note, coming out of one of the most extreme winters in recent memory, it is obvious that a number of market segments did not experience a complete loss of momentum. Overall, we have both increased sales and increased available inventory, when compared with the same time in 2013. We look for the overall confidence in our region to remain consistent and activity to pick-up as we head into the “normal” building/selling cycle.
