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.
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 super-hot Q1 and Q2 leading us into the second half of the year. Leveling off with somewhat of a more steady pace in recent months, what we see now is indicative of a stable market heading into Q4.
As an agent who specializes in lot sales to builders and end users, I am always watching the new housing market, paying special attention to new construction. Lots in the $50,000 to $75,000 range are a hot commodity right now as the total cost for an entry-level home on one of these properties works out to somewhere between $250,000 $375,000.
Other areas, with lots developed in higher price points from $100,000 to $300,000, are not selling as quickly and typically go to custom end-users as opposed to spec builders.
Furthermore, building and development costs have put our builders in a situation where it can be very difficult to build in the under-$300,000 range. The townhome market is doing very well as new construction in this category is selling with a low average number of days on the market.
With 210 new townhomes/condos, out of 374 total on the market, there appears to be room for more inventory here.
Something to note: Millennials and Baby Boomers tend to appreciate the benefits of detached villa style association homes, and buyers in both of these age groups are finding themselves attracted to smaller, low maintenance yards–alongside the privacy afforded by the separation of walls.
In summary, new construction inventory is growing slightly and–though homes aren’t flying off the market quite as quickly as they did in Q1 and Q2–supply is still in a good place and builders are still moving product.
Thanks for reading and sharing. A complete breakdown of my Q3 housing statistics can be found by clicking here.
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.