The United States Census Bureau released their annual report on Characteristics of New Housing this week. The report contains historical data back to 1973 on construction trends in materials, size, price, and types of systems. Of note to The Attias Group Real Estate is the size and price per square foot of new construction. Builders will construct what the buyer pool demands. They are not end users, they are in the business of home sales. As this market continues its strong recovery, they will build bigger if the demand is there.
“New construction is a very important leading indicator of the overall pulse of the housing market,” said Zur Attis broker/owner of The Attias Group Real Estate. “Builders look at the trends; they define what will sell. If they start closing at a higher price per square foot, that will help the entire market,” said Attias.
According to the report, 8% of homes completed in 2012 were 4,000 square feet or more, 18% were 3,000-3,999; 19% were 2,400-2,999; 26% were 1,800-2,399; and 28% were 1,799 and below. In Massachusetts, 10% of homes were 4,000 square feet or more, 14% were 3,000-3999; 18% were 2,400-2,999; 35% were 1,800-2399; and 22% were 1,799 and below. “In our local market, 3600-3800 square feet of above grade space seems to be the sweet spot; it;s difficult to build less because the cost of land is so expensive,” said Zur Attias.
Nationally, only 4% of homes sold for $150 per square foot and above; in Massachusetts that number is 92%. “Much of our local product closes north of $300 per square foot and can be considerably higher depending on quality of construction and location,” said Attias.
“Massachusetts has its own unique statistical trends that do not always line up with what the rest of the country is experiencing. The price per square foot for new construction in our market is dramatically higher than the rest of the country,” said Zur Attias. Zur goes on to say, “In 2013, as more markets heal and resale assets appreciate, new construction sales will increase as builders struggle to mine opportunity and keep up with demand. Square foot prices will almost certainly increase as well.”
For advice and guidance or representation in real estate contact one of our top agents at 978.371.1234 or email info@theattiasgroup.com.
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As housing continues to dominate local and national headlines, the through line of the story continues to be positive, if not exceeding expectations. Data released this week by S&P/Case-Shiller Home Price Indices show all three of their composites National, 20-city, 10-city, posting over 10% year-over-year increases. Boston posted a 6.7% year-over-year increase and a 1.2% month-over-month increase.
As we reach the height of the spring market, 
