Summer is upon us and not just the weather is hot; the housing market is HOT! In the midst of the COVID-19 pandemic, the second quarter housing market numbers show that now is a great time to both sell and buy a house. Overall, there is a lack of homes for sale while at the same time, interest rates are very low. These factors together make these summer months the time to move. Sellers will see quick sales while buyers can take advantage of small monthly mortgage payments.
When comparing July single family homes for sale 2019 verses 2020, there are 862 less houses available. This is a 36% market reduction, which includes resales and new construction homes. Looking at just new construction, the active inventory of homes dropped from 816 in 2019 to only 602 available homes in July 2020. This is the lowest available inventory to date in the last decade.
Pending sales over the course of the summer, thus far, have seen a significant increase when compared year over year. Last July, there were 1,492 single family homes pending sales as of July 1 whereas this year, there are 2,250 sales pending. That is a difference of 758 homes, which truly is amazing when looking at the impact the coronavirus has had on our society.
For closed sales in the metro area, the second quarter of 2020 reports an 11% increase over the numbers from last year. A total of 4,660 single family homes have successfully sold this year as of July 1, 2020. We are talking to clients already about how they are living and working differently, likely now from a home office. Many are finding their living space needs have changed.
For more details, view the chart below showing statistics from 19 metro communities. Home availability and month’s supply is broken out by price range. From a builder’s perspective, it is very interesting to see where the voids are in the market. There are definitely opportunities in certain locations and price ranges. (Full Housing Stats Can be Viewed Here)
The housing market is HOT and now is the time to both buy and sell! We are so impressed with our community; the real estate market and building industry in the Des Moines Metro is still strong despite the pandemic.