New Home Markets with a High Concentration of Tech Jobs Perform the Best
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June data from Meyers Research showed a solid increase in new home sales across many top markets in the country. On a national level, new home sales rose to an average of 2.23 sales per community, up 4.2% compared to March of this year.
- Coastal California, while home to some of the most expensive real estate in the country, also has some of the fastest selling new home communities. For example, San Jose’s average sales pace of 4.56 is up 5.4% since March and San Francisco’s average sales pace of 3.77 is up 8.4%. In these markets, inventory is so scarce that homebuyers looking for new product are quick to snatch up supply.
- Of the top markets outselling the national average, the majority have a high concentration of tech jobs. Denver and Austin, two affordable alternatives to tech hubs like the Bay Area and Seattle, sold just under an average of 2.50 sales per community.
- The average sales rate per community in San Jose, San Francisco, Los Angeles, Phoenix, Las Vegas, Denver, and Atlanta grew by 5% or more quarter-over-quarter.
“We saw a pop in new home sales during the spring selling season, and the momentum is carrying into the summer,” explained Ali Wolf, the Manager of Housing Economics at Meyers Research. “The urgency created by the anticipation of rising rates exaggerated the strong housing market and created a very competitive environment on both the new and resale front. The enthusiasm of buyers is captured in the higher sales rates.”
The data is based on the actively selling new home projects in Zonda, Meyers Research’s iPad application that tracks top economic and housing data across the country. Zonda targets the nation’s 50 top metropolitan areas in terms of housing construction and includes market insight from more than 408 counties. The pace is calculated by looking at the average sales rate per month since all actively selling communities opened in their respective MSA.
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