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 NEW CONSTRUCTION homes were up to 1,517 in 2016, which was 61 more new homes sold compared with the previous year. What we‘re seeing in this segment is a healthful, and notably higher than the resale market, 6.2 months supply.
Furthermore, though the average sales price of new construction homes has continued to rise in recent years, both 2015 ($326,000) and 2016 ($338,000) were indicative of GREATER STABILITY in the Des Moines market with flatter increases of 3-4 percent.
It is worth noting that historically low inventories have continued to translate into a sellers’ market. Today’s BUYERS are often forced to complete with multiple offers while struggling to find the right home, in the appropriate price range, to meet their specific needs.
Though there are fewer homes on the market from which to choose, it is exciting to see buyers are still deciding to make offers, and all signs point to a very STRONG MARKET at the dawn of the second quarter.
For builders, the smart money — following a review of my Q1 2017 single family home statistics or attendance of Friday’s 10th Annual Builder & Developer Luncheon — may be to consider which lots, developments and price points homebuyers in your wheelhouse will find most suitable as we head into what is expected to be a very HOT spring.
Buyers or end-users in need of consultation, or considering the purchase of a new or existing Des Moines-area home, are invited to contact me directly or LEARN MORE on my website at NewConstructionSpecialistDSM.com.
Overall, the Des Moines Metro boasted a RECORD YEAR in 2016 with 9,301 single-family homes sold — the biggest I’ve seen since I got into the real estate business and began tracking the data in 2005.
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.