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 actually reduce the number of pending homes on the market. This is a common misconception as buyers are still FINDING and SELECTING HOMES on the market to purchase.
In fact, we have about the same number of homes under contract as we did a year ago–1,782 today compared to 1,775 at this time in 2015.
After years of sluggishness in the townhome and condo market, the Des Moines-area is seeing this sector take off as inventories FLY OFF THE SHELF. The average list price of these homes is $169,407–a great price point for first-time homebuyers taking advantage of low interest rates. Townhomes and condos currently under contract have received an offer in an average of 36 days.
High lot and land prices, combined with a shortage of skilled tradesman, have continued to drive prices in the new construction market. New construction homes under $350,000 are seeing FEWER DAYS on market than inventory above that price point. At the same time, there are FEWER MONTHS of supply for homes being built over $350,000.
Des Moines-area builders have experienced great successes in the past couple of years, and continue to enjoy a HOT LOCAL market recognized among the leading Midwest communities. As a builder, It is also important to look for more affordable lots and keep new homes priced at a point where more buyers are able to purchase. That’s a KEY to quick sales.
I would consider looking at all my data, broken down by city, and picking areas that have fewer than six months of new construction supply–SHOWING A NEED for more inventory!
Looking to sell a home? You may be pleasantly surprised with the recent equity you have gained in recent years–or even the past few months. In the 18 Des Moines-area communities I track, the average sales price of a single-family home, in the first half of 2016, was $216,922. The average sales price of a home that sold in the first half of 2015 was $204,779.
This reflects 6 percent APPRECIATION in the past year. Historically, on average, sale prices in the market that reflected 3 percent appreciation are closer to the norm. I believe certain areas and types of properties saw a much higher appreciation the last year than the six percent that was reflected.
I am a Residential REALTOR® and Certified New Construction Sales Professional who specializes in helping homebuyers locate a suitable lot, secure a qualified builder, and pick a perfect floor plan to match their unique tastes or personal style. After listening and understanding the needs of my clients, I offer appropriate feedback and credible data that help buyers and seller make informed decisions in regards to real estate transactions. Follow me on Facebook, Twitter and LinkedIn.