Posts in category 'New Construction'
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26
Your Ultimate Guide to Buying a New Construction Home in 2026
Buying a new construction home can be an exciting opportunity for today's buyers. From modern layouts and energy-efficient features to brand-new systems and builder warranties, new homes offer benefits that many resale properties simply can't match. However, the process of purchasing new construction is different from buying an existing home, and understanding how it works can help you make confident, informed decisions.
Steps to Buying a New Construction Home
6
Subdivision Highlight: Valley View Farms
If you're on the market for a new construction home with large, spacious lots, and low county taxes, we've got a neighborhood for you! Let us introduce you to Valley View Farms. This subdivision gives you the luxury of country estate living but also the practicality of being close to town and minutes from the Quad Cities. Valley View Farms was constructed with the outdoor enthusiast in mind as it includes exclusive neighborhood-only walking paths, is down the road from Scott County Park, and only a 10-minute drive to Lost Grove Lake and the
9
Subdivision Highlight: Valley View Farms
If you're on the market for a new construction home under $615,000 with large, spacious lots, and low county taxes, we've got a neighborhood for you! Let us introduce you to Valley View Farms. This subdivision gives you the luxury of country estate living but also the practicality of being close to town and minutes from the Quad Cities. Valley View Farms was constructed with the outdoor enthusiast in mind as it includes exclusive neighborhood-only walking paths, is down the road from Scott County Park, and is only a 10-minute drive to
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"!
10
Regional New Homes Market off to a Good Start in 2017
Builders and developers across the region are hoping that a solid increase in first quarter sales reflects stronger customer confidence and result in stronger sales levels for the entire year in 2017. Area MLSs reported an overall growth of 27% in unit sales YTD. New house sales were up 13%, while condo sales jumped 62%. Builders have also demonstrated their confidence by increasing inventory levels of houses by 6% and condos by 57% vs. 2016. As always, results vary by individual market segment.
The chart below displays the relationship between sales prices for ALL of 2016 vs. the first quarter of 2017. Please note that it is too early in the year to identify these results as a trend.
| Houses | 2016 | YTD 2017 |
| Below $300K | 22% | 34% |
| $300K-$400K | 44% | 39% |
| Above $400K | 34% | 27% |
| Condos | 2016 | YTD 2017 |
| Below $200K | 38% | 46% |
| $300K-$400K | 47% | 39% |
| Above $400K | 15% | 15% |
Early results continue to reflect this region's preference for ranch style homes. However, multilevel home sales have contributed to the lower average sales prices YTD. New home sales account for 1 in every 10 sales regionally. Following is a summary of activity in major markets:
CEDAR RAPIDS: All segments of the Cedar Rapids market reported sales increases over last year, with the biggest gains coming in the College Community District with triple the sales vs. 2016. The 4 Quadrants/Hiawatha/Robins market saw a 400% increase in condo sales, coupled with a 43% decrease in house sales. Marion reported a sales increase of 26%. Area inventory is down just 3%.
DUBUQUE: The area is off to a slower start than the rest of the region, reporting an overall drop in sales of 14%, with houses down 33% and condos up 100% vs. 2016. Overall inventory is up 35%, with houses up 10% and condos up 162%. House sales $175-225K represent the largest segment for first quarter sales.
IOWA CITY: Coralville-Tiffin continues to set the pace for sales in the Iowa City area with an increase of 123% over 2016 and 38% of area MLS sales. Iowa City was the only segment that did not report an increase in sales, but did report the same number of sales as YTD 2016. Overall sales in the area increased by 43% while area inventory jumped by 49%, with the largest increases in both sales and inventory coming in condos. 1 in every 5 area sales was a new home - twice the regional average.
QUAD CITIES: Area sales increased 2% over 2016 YTD. While house sales are up 23%, condo sales dropped 53%. Overall supply of new homes has grown 11%, with houses up 18% and condos up 6%. 86% of houses sold in the market were above $300K, while 57% of condos were also above $300K. This represents 43% of homes sold regionally in this price range, despite the fact that the area accounts for only 25% of regional sales.
We do expect to see the average sales prices to climb as the year progresses since there are no real signs of relief coming for materials, labor, land or regulation costs in the near future.
