In a recent article by Miami Agent magazine, the latest home sales stats from the US Census Bureau show many things are at work in the new construction marketplace. Three things we can learn about these important trends happening in the new construction market throughout 2015.
#1. Real estate historical gains. New home sales in July showed extremely positive gains up 5.4% from June and 25% from July 2014. However, so far in 2015 there up 20% year to date and historically, year to date readings are the most accurate take on new home sales. July's rate of 507,000 sales marks the third time this year that new home sales have posted their best numbers since 2008.
#2. This is not a rebound. Not only is this a good market for new construction but homebuilders are constructing more affordable properties. Construction of new homes priced under $200,000 has grown dramatically while homes priced over $500,000 and above have seen their market share fall. These affordable new construction properties show just how vigorously new construction has shifted to a top-heavy industry.
#3. Price moderation. The median sale price for new homes in July, 2015 was $286,000. This was a 2% increase from last July and a 3% increase from June, 2015. The average sale price was up nearly 5% yearly and nearly 14% monthly at $361,000. Prices are still historically high with median prices up 26% from the boom era pricing in 2005.
New construction is on the rise and at the Miami area grows dramatically, we are seeing a great balance between affordable units in homes and luxury high-end properties. With this balance in place, everyone is more likely to find a home that they're looking for in the price range they can afford.