A recent article in the Des Moines Register perfectly sums up 2021. In the article, Ted Weaver (past president of the Des Moines Area Association of Realtors) states, “It was a historic year for home sales by any measure.” And we agree, 100%.
The Des Moines real estate market was on fire, not only in the fourth quarter but for the entire year. Record breaking sales and record breaking construction have dominated market conversations for months now.
Homes of all types flew off the market. Buyers were hustling to make offers, most finding themselves compromising “must haves” simply to be able to get a home before someone else snagged it up. It has been quite the experience but we should caution ourselves and not get too comfortable. Change is on the horizon. Mortgage rates began increasing as 2021 came to end, closing at the highest rates we’ve seen since the start of the pandemic, which should stabilize the market. Higher interest rates could create a hot spring market as anyone waiting to buy or sell might decide to move before interest rates go up much more!
Overall, the active home market has stayed pretty similar when comparing 2020 to 2021 as a whole. Both were amazing years! Currently, we have only 1.3 months of single family homes on the market. (1,179 single family homes in the market vs 1,192 at the end of 2020). New construction inventory has grown from 629 active single family homes on the market to 800 active single family homes, a difference of just over a half a month’s supply from the end of 2020 to the end of 2021.
When we mention marveling over the number of sales, check out this one: 68% of the available single family homes in the Des Moines metro are NEW construction. The industry is drastically lacking resells. Why is that? Can the pandemic mentality be to blame? Only time will tell as we continue to analyze and track the trends at the start of the new year.
Pending single family homes remain strong and steady at 1,466 today vs. 1,491 a year ago. Out of those homes, 618 are new construction vs. 602 as new construction in 2020. 2021 had a grand total of 11,153 single family homes sold — this is the most homes sold since I began tracking back in 2007! (The lowest number sold was 5,417 in 2010.)
Out of the homes sold, new construction made up only 21% of total sales. When comparing total homes sold year-over- year, we tracked a 10% increase over the number of new construction homes sold in 2020.
February 24, 2022 marks our annual Builders and Developers Luncheon. We are super excited to host it as an in-person gathering this year! Join us as we hear presentations from Jay Byers with Greater Des Moines Partnership and Michal Neal, an economist with Urban Land Institute.
I will also be speaking to last year’s statistics and projections for 2022. You are invited for a wonderful event full of learning and networking opportunities.
Register now by clicking HERE. Hope to see you soon!