RIO GRANDE VALLEY HOUSING 2Q17: New Home Starts and Closings Continue Up
- Through 2Q17, Annual New Home Starts are up 10% YoY
- The annual rate of new home closings currently stands at 1,938 which is up 5.5% over a year ago
- Information from the Texas A&M Real Estate Center shows the Rio Grande Valley resale market grew by 3.0% in sales activity year-over-year as of June 2017; the annual average price of sales through the Rio Grande Valley MLS over the last year was up 5% YoY to $154,592
The annual rate of new home construction in the Rio Grande Valley as determined by Metrostudy’s 2nd quarter drive survey is 2,073 starts, a 10.0% increase over the 2Q16 rate. There were 488 starts and 555 closings in The Valley in the second quarter. The annual rate of new home closings currently stands at 1,938 which is up 5.5% over a year ago.
Metrostudy’s 2Q17 analysis found the level of new home inventory to decrease 67 units in the second quarter. There was a total of 1,328 homes in inventory (Models, Finished Vacant and Under Construction) at the end of 2Q17, which represents an 8.2 months of supply. Metrostudy documented 771 homes under construction and 538 homes finished vacant at the end of the 2nd quarter.
There were 12,274 vacant developed lots in inventory at the end of the second quarter in the Rio Grande Valley market. Based on the current annual starts rate of 2,073, this lot total represents a 71.1 months of supply of lots, well above what is considered a healthy range. A year ago there were 12,415 developed lots, a 79.0 months of supply.
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About Metrostudy: Metrostudy is the leading provider of primary and secondary market information to the housing and related industries nationwide. Metrostudy provides research, data, analytics and consulting services to help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. For more information, visit www.metrostudy.com
About Hanley Wood: Hanley Wood, LLC is the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries. Utilizing the largest editorial- and analytics-driven construction market database, the company produces powerful market data and insights; award-winning publications, newsletters and websites; marquee trade shows and executive events; and strategic marketing solutions. To learn more, visit hanleywood.com.