September 2018 Preston Report10/30/2018
New homes sales are down 23% from last September, 67 compared to 87 last year. A trend for the last couple of years. Year to date sales is down 51 closed deals or 7%, compared to last year. As I said, total sales are up 59 closings, so existing sales are up 110 transactions from year with that much down for new homes. You have heard me say before that Sales volume for new homes accounted for about a third or 33% of the total sales volume for over 15 years. But the last couple of years it has fallen to 25% and currently at 22%.
Here is a comparison of year to date (Jan 1st thru Sept 30th) total sales and new home sales for this year, last year, and the year before the drop in new home sales.
Total sales New home sales
2014 3395 876
2017 3400 721
2018 3459 670
Even though total sales are close to the same. new home sales have dropped by 206 closed deals in same time frame. I have wondered if it is people are DIY renovation or buying the flips that are fixed up to max like new?
You will also notice the changes in absorption rates in new homes between $300,000 and $700,000. they all had an increase in listing and a big drop in closing which extend the absorption rate. The $700,000 to $999,999 price range saw a big drop because of the combination of a drop in active listing and a great closing month in September for that price range.
Have a good Trick or Treat
Click here for September Preston Report