Can a pandemic be the best thing to happen to the housing market? Interesting enough, it can be! The home building and residential real estate market is booming. 2020 has set a record for the highest number of new construction homes sold in more than a decade. This is going to be a record year for real estate sales!
Amidst this unprecedented time, certain economic sectors are struggling, unemployment is high, and construction costs and supply chain issues are a daily problem. At the same time, interest rates are at an all time low and the market is begging for inventory. No one expected a quarter like this, yet alone a year like this! Earlier this spring, many speculated that the market for new homes would slow down but the opposite has happened. This is evident when digging into the numbers.
It is hard to believe that currently there is only a 1.8 month supply of single family homes on the market. A year ago, there was a 3.5 month supply. That is a crazy difference! There is a major shortage of homes for sale at the present time, in the communities around us. The number of sales of single family homes illustrates the story of market success. At the start of the fourth quarter, already more homes have been sold this year than ALL of last year!
New construction homes are currently at a four month supply. Last year at this same time, the Des Moines area was at a 6.2 month supply. Builders across the metro are experiencing record years. Houses put onto the market are selling so quickly that they can hardly keep up. Today there are 2,065 single family homes pending sale versus last year when there were only 1,231 homes pending at the start of October. For new construction, this year shows 696 homes pending sale versus 2019 October numbers of 322 homes pending. That is a 216% increase in sales volume!
It is a seller’s market out there and will continue to be for the rest of this year. Perhaps it is the steadily low interest rates, or the hope found in the upcoming election, or maybe just the restlessness that is the result of the COVID-19 pandemic but, whatever the reason, homes of all build are selling in record numbers for 2020.
If you would like to have a real-time conversation about Des Moines’s local real estate and new construction market, please email Kalen@peoplescompany.com. Also, be sure to check out the residential lots for sale at www.kalenludwig.com.
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.