RIO GRANDE VALLEY HOUSING 3Q17: The Market Continues Strong in 3Q17
- Through 3Q17, Annual New Home Starts are up 9.5% YoY
- The annual rate of new home closings currently stands at 1,940 which is up 8.7% over a year ago.
The annual rate of new home construction in the Rio Grande Valley as determined by Metrostudy’s 3rd quarter drive survey is 2,069 starts and this is a 9.5% increase over the 3Q16 rate. There were 463 starts and 404 closings in The Valley in the third quarter. The annual rate of new home closings currently stands at 1,940 which is up 8.7% over a year ago.
Metrostudy’s 3Q17 analysis found the level of new home inventory to increase 59 units in the third quarter. There was a total of 1,404 homes in inventory (Models, Finished Vacant and Under Construction) at the end of 3Q17, which represents an 8.7 months of supply based on the annual closings rate of 1,940. Metrostudy documented 808 homes under construction at the end of the 3rd quarter.
There were 12,136 vacant developed lots in inventory at the end of the third quarter in the Rio Grande Valley market. Based on the current annual starts rate of 2,069, this lot total represents a 70.4 months of supply of lots, well above what is considered a healthy range. A year ago there were 12,222 developed lots, a 77.6 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
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