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Q3 2019: Des Moines Metro Housing Snapshot

By Kalen | Published October 25, 2019

Like it or not, autumn has arrived and old man winter is fast approaching in Central Iowa. Speaking of crazy Iowa weather, it has actually played a very interesting role in this year’s real estate sales and market activity.

Excessive rainfall in recent months helped turn some building sites into impromptu slip-and-slides, causing delays in construction and contributing to a lower-than-expected number of housing starts. Developers, too, haven’t been able to get in all the plats they had hoped and many are playing catch up following a super wet summer and spring.

Currently, interest rates, talk of future recession, and a dip in home sales from prior years are each at the forefront of everyone’s mind. In reality, weather conditions in recent months have helped “right size” Central Iowa’s available housing inventory, keeping it at a good level and acting as a life vest for builders’ margins heading into Q4 2019.

A trend toward lower mortgage rates, FORECAST TO CONTINUE into the next year, was a defining factor of Q3 2019, and resulted in a little paddle kick for the Des Moines Metro. As of October 1, the total number of active homes on the market was 2,577, an increase of 4 percent when compared to 2,473 a year earlier. So, the inventory of single-family homes has swollen a bit, but is still low with an overall 3.5 months supply.

Four hundred and twenty six of the 2,630 single-family units sold to date in 2019 were new construction homes. To date, if we add the total number of single family homes sold and the total number of pending single family home sales in 2019, the sum is only 1,043 shy of rising to the same mark as year-end 2018. So, with a couple more good months here in the fourth quarter, we hope to see a fairly similar outcome as the previous year.

Today, there are a total of 784 active listings of new construction homes in the Des Moines Metro, versus 925 homes in October 2018. This translates into a current active supply of 6.2 months, compared with 6.8 months a year ago.

I found this statistic to be particularly interesting because of the correlation between housing starts and new construction inventory, as both were down in the most recent reporting period. I also find this reassuring, as a builder in our industry, that we have a good and stable supply of new construction inventory with six months considered the proper buoyancy between a sellers market and a buyers market.

The bottom line is that Des Moines is still seeing great growth and is a hot city. Besides, we were recently ranked No. 1 on CNBC’s LIST OF PLACES where millennials could actually afford to buy homes. Moving forward, builders just need to be calculated in their decision-making process, adjusting expectations to reflect that homes may not move quite as fast as they have in the past two or three years.

If you are looking to stay up to date on the current housing economy, be sure to save the date for our 12th Annual Builder and Developer Luncheon, February 28, 2020, at the Ron Pearson Center in West Des Moines. More info to come!

Meanwhile, I am always available to continue a real-time conversation surrounding Des Moines’ local real estate and new construction market, and can be reached by email at Kalen@PeoplesCompany.com.

To view a complete rundown of my Q3 2019 Housing Statistics, CLICK HERE.

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Q2 2019: Des Moines Metro Housing Snapshot

By Kalen | Published July 15, 2019

There’s some welcome news in today’s market for buyers and sellers ready to make the most of the summertime house hunting and homebuilding season. MORTGAGE RATES dropped since April, and are currently at the lowest levels we have seen for over 18 months. So the market is seeing some traction as more buyers are showing an interest in making offers, due to the improved affordability! As of July 1, the total number of active single-family homes on the Des Moines Metro Market, including re-sales and new construction homes, had increased 5.9 percent to 2,370, compared with a year earlier. When you single out the active inventory of new construction single-family homes, we actually saw a decrease from 853 a year […]

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Q1 2019: Des Moines Metro Housing Snapshot

By Kalen | Published March 01, 2019

The number of single-family homes listed in the Des Moines Metro inched slightly upward in 2018, as sales growth slowed and the affordability of new construction contributed significantly to our present market conditions. There are currently 2,132 active single-family homes on the Des Moines market, translating into a 2.8-month supply and an approximate increase of 8.7 percent from a year ago. Given that a six-months supply reflects stability, we have continued to view the Des Moines Metro through the lens of a seller’s market, especially in price points below where builders are able to provide inventory. What we are seeing today is the tale of two markets, including a resolute “resale” market with the majority of listings under the $300,000 […]

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Q4 2018: Des Moines Metro Housing Snapshot

By Kalen | Published January 16, 2019

The start of a new year is always a great time for developers, builders and real estate professionals to reflect on the past and start mapping out the future. Two-thousand-and-nineteen is going to be a year of change as national homebuilders enter the Des Moines Metro and with affordability and rising interest rates being a concern. Personally, I get excited when I think about the validation of a strong market, one that is strong enough to attract the attention and confidence of national builders. At the same time, now is the time to be more intentional than ever with collecting and analyzing data on what is selling – to help determine where and at which price points to build. When […]

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Q3 2018: Des Moines Metro Housing Snapshot

By Kalen | Published October 17, 2018

The word on the street when it comes to housing is that the national market may have peaked and is starting to cool down a bit. At the same time, according to one national article on CNBC’s “Realty Check,” it’s important to follow all the facts as inventory, price point and location each play key roles. IN THEIR WORDS: “The housing recovery isn’t over, it just feels like it…” Following a period of substantial growth, it is a great time to reflect on the local housing market – where strong demographics (the region grew 1.8 percent to 645,911 residents in 2017) and a sizzling labor market (2.5 percent unemployment rate) factor in. Let’s assess our Des Moines Metro housing statistics […]

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Q2 2018: DES MOINES METRO HOUSING SNAPSHOT

By Kalen | Published July 17, 2018

It’s been a scorching summer in the Des Moines Metro! Has the real estate market been hot as well? Read on to get some inside information on how Q2 in the Des Moines Metro stacked up. Total active single family homes as of July 1st is 2,239. This is up just slightly from 2,154 a year ago at this time. Thirty eight percent of the homes on the market are NEW CONSTRUCTION listings. In comparison, at the end of Q1 2018 46.5% of the available inventory was new construction. Total inventory has been low for several years, so this is not a bad thing to have a few more homes listed in our market. A stable market is considered to […]

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Q1 2018: Des Moines Metro Housing Snapshot

By Kalen | Published March 01, 2018

With a total of 1,961 active listings of single family homes, translating into a 2.5 months supply, this ​LOW LEVEL of inventory reflects a trend we’ve been tracking over the past five years​,​ and appeared to continue in Q1 2018. Heading into March, there were 1,257 pending sales of single family homes in the Des Moines ​Metro​, or 74 fewer pending sales than a year ago. The ​TOTAL MONTHS SUPPLY – six months is considered to be indicative of a stable market – has hovered around two to three months over the past several years, and continues in that range today. The overall inventory has continued to drop and listings of ​NEW CONSTRUCTION homes are growing. Notably, of the total […]

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Q4 2017: Des Moines Metro Housing Snapshot

By Kalen | Published January 19, 2018

Two-thousand-and-seventeen was another BLOCKBUSTER year for the Des Moines Metro housing market as sales of single-family homes in the 18 communities I track reached a record-breaking high of 9,415. INVENTORY in the overall single-family housing category remained low heading into 2018, while the number of total active listings increased slightly to 2,035, compared to 1,910 at the end of 2016 and 2,043 a year prior. New construction made up 1,677, or 18 percent, of the total number of single-family homes sold in 2017, with the SUPPLY AT YEARS-END sitting at 6.7 months. That’s compared to 6.1 months of supply at the end of 2016 and 5.5 months of supply for the year-earlier period. While the price of a NEW HOME […]

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Q3 2017: Des Moines Metro Housing Snapshot

By Kalen | Published October 23, 2017

Active listings of single-family Des Moines-area homes fell at the end of Q3 2017 to 2,064, down 4 percent from 2,154 listings on July 1. Fast forwarding to October, what we now see is quite a few new homes going on the market and GROWING INVENTORY in the Des Moines Metro housing market. The total number of single-family homes sold through Q3 2017 is 7,294 existing homes and 1,279 new construction homes. When compared to this time last year, which boasted a phenomenal 7,148 existing homes sold and 1,157 new construction homes sold, the single-family market is POISED TO OUTPACE those figures as we track yet another record-breaking year! As I write, the total number of active NEW CONSTRUCTION homes […]

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Q2 2017: Des Moines Metro Housing Snapshot

By Kalen | Published August 04, 2017

The Des Moines Metro housing market continued its boom in Q2 2017 as resales of single-family homes were up and local inventory of new construction fell. The number of total active listings increased to 2,154 single family homes in Q2 – up slightly from the past two quarters and fairly typical for the spring/summer selling season. At the same time, though the total inventory grew and there are more resales on the market, new construction inventory was lower, with 732 active listings in Q2, compared to 781 listings in Q1. Pending new construction numbers are also stronger this quarter, compared to both Q1 2017 and Q2 2016. The total months supply for all single-family homes and for new construction is […]

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Q1 2017: Des Moines Metro Housing Snapshot

By Kalen | Published March 03, 2017

With 1,843 active listings of single-family homes, the Des Moines Metro is once again seeing an ALL-TIME LOW in terms of active inventories, and in comparison to previous years. Of these listings, 42 percent are comprised of new construction homes. Overall inventories of residential real estate remain very low as a six-month supply is considered to be a sign of market stability. Today, TOTAL SUPPLY of single-family homes sits at 2.4 months, a slight decrease from 2.6 months as of a year ago. The total number of PENDING SALES of single-family homes stood at 1,331, a year-over-year increase, as pending sales of new homes also rose to include offers on 339 properties, compared with 298 in Q1 2016. Sales of […]

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Q4 2016: Des Moines Metro Housing Snapshot

By Kalen | Published January 25, 2017

The state of the Des Moines-area housing market heading into 2017 can be associated with an extremely low inventory of single family dwellings in general, yet a steady uptick in the availability of new construction homes over the past several years. A historic number of 9,277 single-family homes sold last year in the 18 communities I track with new construction comprising 16.3 percent of the total sold for 2016. For comparison, in both 2007 and 2010, 19 percent of total sales in the Des Moines market were tied to the development of new construction homes. The resale market over the past year has been very hot due to a lack of new construction homes being built under a $250,000 price […]

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Q3 2016: Des Moines Metro Housing Snapshot

By Kalen | Published October 31, 2016

The Des Moines-area housing market showed further signs of stabilization in Q3 2016 as the total number of homes sold year-to-date reached 7,450­­–up from 6,871 a year ago. That puts the Des Moines Metro on track to achieve another record year. The number of new construction homes sold also increased–to 1,268–compared with 1,097 through Q3 2015. Total inventory has continued to decrease with just 2,210 active single-family homes on the market–a 2.9 months supply as of October 2016–compared to 2,496 a year ago at this time. For further comparison, there were a total of 2,150 single-family homes on the market at the beginning of Q2 2016. The local real estate market overall had a terrific 2016 so far with a […]

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Q2 2016: Des Moines Metro Housing Snapshot

By Kalen | Published July 27, 2016

Home sales in the Des Moines Metro are on track to break records this year as local REALTORS belonging to DMAAR have reported a total of 4,524 single-family homes sold as of July 1, 2016. Of those, 719 or 16 percent, are new-construction homes. Inventories of RESIDENTIAL REAL ESTATE are at an all time low, both locally and nationally. Today, the Des Moines-area has 2,150 single-family homes on the market–A 2.8 MONTHS SUPPLY–compared to 2,418 at the end of June last year. The inventory of new construction, includes 644 single-family homes on the market, which is up by 44 homes over a year-over-year basis. One may think that with the low inventory that buyers have to choose from, this would […]

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Q1 2016: Des Moines Metro Housing Snapshot

By Kalen | Published March 07, 2016

Attendees of the Ninth Annual Builder & Developer Luncheon in February were provided with an update on the Des Moines-area new construction housing market and breakdown of lot inventories by city. Follow the links to access to my Q1 2016 presentation slides and complete housing statistics for 2015. Given 2015 was a RECORD YEAR with 8,795 single-family homes sold – compared with 7,935 total homes sold during a very strong market in 2005 – a look back over the past 12 months shows many encouraging signs that 2016 could be another great year for local builders. As of February 2016, the number of total active listings of single-family homes in the Des Moines market stood at 1,942, compared with 2,291 […]

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9th Annual Builder and Developer Luncheon

By Kalen | Published February 17, 2016

Here are the slides from the Ninth Annual Builder & Developer Luncheon, presented by Peoples Company and Diligent Development, and my full single-family housing statistics from Q1 2016. Also, for further details on current single-family market statistics in the Des Moines-area, please check back as they will be released on my blog shortly after the information presented at the luncheon! Click here for 9th Annual Builder & Developer Luncheon Slides Click here for Q1 2016 Stats

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Q4 2015: Des Moines Metro Market Snapshot

By Kalen | Published January 18, 2016

Sales of existing homes picked up the pace in 2015, returning Iowa to levels not seen since prior to the recession. It was a historic year with regards to the 8,795 total single-family and 1,456 new construction homes sold in the Des Moines-metro area. Activity is picking up as the housing recovery attracts more buyers in the 18 communities I track on behalf of Peoples Company throughout Greater Des Moines. At the same time, choices are still limited by a lack of available inventory within some buyers’ budgets. As of December 31, there were 2,043 active listings of single-family homes in the Des Moines-metro area, or 301 fewer than the previous year. The inventory of new construction homes increased slightly, as of December […]

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Q3 2015: Des Moines Metro Market Snapshot

By Kalen | Published October 15, 2015

Central Iowa has something for everyone, thanks to job growth and the relatively low cost to get into an existing or new construction single-family home. In this – my Q3 2015 edition of the Des Moines Metro Market Snapshot – I’m presenting ten  “Fast Facts” on inventories, price points, hot spots, homebuilders and more. 10 Fast Facts on the NEW CONSTRUCTION MARKET in Des Moines 1. The total inventory of single family units in the 18 Central Iowa communities I track fell by 320 – to 2,496 houses – compared with the year-earlier period. 2. Des Moines-area homebuilders showed no signs of slowing and they were ahead of schedule in the third quarter with 1,746 building permits pulled – as […]

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Q2 2015: Des Moines Metro Market Snapshot

By Kalen | Published July 23, 2015

The Des Moines Metro Market Snapshot is a quarterly report featuring inventories of new construction and existing single-family homes in the 18 communities I track for Peoples Company. My reports cover the residential housing data and statistics presented during Peoples Company’s Annual Builder & Developer Luncheon, and provide updates on the Des Moines-area market throughout the year. The mercury is rising in Greater Des Moines, named as a Top 10 Hot Housing Market by the National Association of Realtors, amid increased levels of pending sales, homes SOLD and room for new construction throughout the region. Sellers are terrifically positioned to take advantage of this HEAT WAVE, fueled over the spring by low inventories – and contributing to higher average sales […]

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Q1 2015: Des Moines Metro Market Snapshot

By Kalen | Published March 20, 2015

The Des Moines Metro Market Snapshot is a quarterly report featuring inventories of new construction and existing single-family homes in the 18 communities I track for Peoples Company. My reports cover the residential housing data and statistics presented during Peoples Company’s Annual Builder & Developer Luncheon, and provide updates on the Des Moines-area market throughout the year. The 2015 Builder & Developer Luncheon, presented by Peoples Company and Diligent Development, walked us through the prior year and provided a look to what’s ahead in for the Des Moines area housing community. My annual presentation is focused on comparing statistics, sharing information and leading a discussion about trends throughout the residential real estate and the new construction home market in Central […]

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8th Annual Builder and Developer Luncheon

By admin | Published February 27, 2015

Here are slides from the 8th Annual Builder and Developer Luncheon! Also for further details on Single Family Market Stats please see my Q1 2015 Stats and watch for my blog to come out shortly on these numbers. Click here for Q1 Stats Click here for 8th Annual Builder and Developer Luncheon Slides

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