What do the numbers tell us when it comes to new construction home sales versus residential home sales? I took a look back 11 years to see what we can learn about our market.
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Comparing new construction home sale versus residential home sales can tell you a lot about a market. Today, I wanted to give you a look back at these sales from the last 11 years.
For a good visual, take a look at the graph in the video above at the 47-second mark. You can see that home sales kind of bottomed out in 2008 when we had the lowest total amount of homes sold in our market in the last 11 years with 8,190 sales. Then in 2005, we saw 19,381 sales. It increased slowly over the last few years and has maxed out at 16,618 last year.
That's a nice, healthy growth for our marketplace.
An interesting thing to look at is the new construction home sales, which continued to drop and bottomed out in 2011 at 1,145 sales. That made up just 11% of the marketplace sales that year. That number has steadily increased since then, and new construction sales made up 21% of the sales for 2016 with 3,561 sales. You can see that there's a lag for new construction.
So what does that mean for our marketplace?
The Idaho Department of Labor just released the numbers and we're No. 3 in the nation for growth at 1.8%. The national average for growth is 1.1% I predict that we'll see home sales continuing to go up through the next year, which will correlate to new construction. We have low inventory right now, so I think this will continue to spur growth in new construction through the summer and the end of the year.
All in all, I predict that we'll see continued growth across the market based on what the numbers show and what we see trending in the marketplace. If you have any questions I can help with or you're thinking of buying or selling a home in our area, give me a call or send me an email. I'd be happy to help you any way I can!