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Q1 2021 is HOT despite record freezing temps!

By admin_leng | Published February 26, 2021

The ending of the first quarter of 2021 marks the one year mark for the global coronavirus pandemic. Who could have predicted we would also be in the one of the robust housing markets any of us have ever experienced? What brought about this market, we ask ourselves? Was it the extremely low interest rates? Could it be the stimulus money that was introduced into our economy? Is the work from home requirements that our workforce was forced to accommodate? We may never fully understand all the factors that got us to where we are today but everyone can agree; this is uncharted territory for the housing market, both in new construction and resale.

When looking at 19 different communities in the Des Moines metropolitan area, 61% of available home inventory is new construction.  This equates to a 3.5 months of new construction supply. There are 1,031 total single family homes available in total for our community at-large. This is just a 1.2 months worth of supply, making inventory unbelievably low as we head into the second quarter of 2021. Total homes sold in Q1 was 759, with 22% of sales being new construction. This is a record-breaking number! (For detailed statistics and analysis, I invite you to view the recent presentation given at the 2021 Builder Luncheon in February.) When digging deeper into the data, we see that there are only 406 resale homes on the market in the metro as we go to press! This is historically unheard of, which brings us to the bigger topic at hand.

A very hot market with low supply has felt good, really good from a builder/developer perspective. One must consider with some concern though, what does that mean for the Des Moines metro area? Are we going to be able to provide affordable housing to our growing population? If yes, how?

The average sale price of a new construction home in 2020 was $340,000, a 1.7% decrease year over year. This is an interesting number to see, as the cost of materials increased significantly with the pandemic. The rise in home prices was felt mostly in Q4 of 2020 so when averaged with the very low prices of homes in the first three quarters, we were still able to see a decrease year over year. That said, one would expect 2021 prices to more accurately reflect the rise in the price of building materials. To illustrate that trend, today the average list price for new construction is $349,781. For more information on first quarter single family home sales, view our Q1 2020 Stats

Affordability in housing is going to be the hot topic for the foreseeable future. Low interest rates and strong demand has been a blessing to us. Interest rates will rise again though in an attempt to slow inflation and then we will see the affordability problem front and center. All players in our industry (developers looking at land costs, lot sizes and market demand; city officials putting into place long term policy; builders deciding on product input; and more) must pay attention to the market and how every additional dollar influences our customers in a major way.

I applaud this community for the work that has been done thus far to meet buyers at prices they can afford. Cities across the metro are allowing developers to put in smaller lots to keep land prices affordable. Builders are offering smaller and more entry-level projects. (Condo and townhomes continue to be in high demand.) Throughout the coming year, we as an industry need to closely watch inventory levels, price increases and interest rates to strategically plan lot development and home permits for the second half of the year and beyond. The partnership and collaboration between developers, builders and city officials must continue in these ways and more for the market to be sustainable going forward.

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Des Moines Real Estate in 2020

By admin_leng | Published January 15, 2021

“What a year 2020 has been!” How many times have we all heard that before? Yet it always seems to be so very, very true.  It definitely applies when we look at the housing market!  2020 saw phenomenal sales for new construction homes in the Des Moines area, representing 20% of all single family home sales in 2020.  The last time we reached a number even somewhat close to this was in 2007 at 19% market share.  A truly remarkable year 2020 has been. What is driving this consumer desire for newly built homes? The Urban Land Institute* refers to the current boom as “the great American move”, which was ignited by the pandemic, creating a growing desire to live […]

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How has the pandemic effected the housing market?

By admin_leng | Published October 15, 2020

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 […]

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Housing Market is HOT Despite COVID-19 Pandemic

By admin_leng | Published July 21, 2020

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 […]

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Single Family Home Sales Increase from 2019

By admin_leng | Published April 28, 2020

COVID-19 is upon us and the population is quarantined at home. However, it seems that many are feeling that now is the time to find a new home. Customers are taking advantage of online research tools and non-traditional ways of buying and selling property. Interest rates continue to remain low, making this a great time to buy. Kalen Ludwig Real Estate Specialists are practicing social distancing and helping customers in unique ways to keep up with the demand. Single family home sales are up by 116 homes when comparing data from April 2020 (2279 homes) to that of April 2019 (2163 homes). New construction sales are up a total of 43 homes when compared to the same time frame last year. […]

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Economic Update with Elliot Eisenberg

By admin_leng | Published April 02, 2020

Thank you to Elliot Eisenberg for joining us to discuss the impact COVID-19 is having on the real estate industry, and economy as a whole. If you missed the call, or would like to replay the call, you can do so below.

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Economic Update with Elliot Eisenber, Hosted by Kalen Ludwig

By admin_leng | Published March 27, 2020

We know questions about the economy — especially in the housing market — is on many people’s minds during this unprecedented time in our history. We are excited to have internationally acclaimed economist Elliot Eisenberg join Kalen Ludwig on April 2nd to discuss development, new construction and the housing industry as a whole. We’d love to get as many of your questions answered, so we ask that you provide them to us in advance. Email them to Kalen Ludwig at kalen@peoplescompany.com. ~~~~ Full Meeting and Dial-In Information Topic: Economic Update with Elliot Eisenberg, Hosted by Kalen Ludwig Time: Apr 2, 2020 01:00 PM Central Time (US and Canada) Join Zoom Meeting https://zoom.us/j/345558691 Meeting ID: 345 558 691 One tap mobile […]

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Continuing to work for you amidst COVID-19

By admin_leng | Published March 23, 2020

We understand that your housing needs — whether you are buying or selling — doesn’t stop in the face of this pandemic; especially when mortgage rates are at a steady low. Rest assured, we won’t stop working for you and our number one priority at Kalen Ludwig Real Estate Specialists is your health and safety. We are happy to assist you in smart, private showings. We also are equipped with hand sanitizer, gloves, and everything you need giving you added peace of mind. You won’t even have to leave the comfort of your home with our virtual tour options. Whatever virtual platform you prefer to meet on, we are ready and prepared. Stay safe and healthy! We are here for you […]

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Q1 2020: DES MOINES METRO HOUSING SNAPSHOT

By admin_leng | Published February 26, 2020

Earlier this month, the groundhog told us “spring is coming” as he crept out of his burrow after his long winter sleep.  Spring, indeed, is coming and for the real estate and homebuilding industries this is an exciting time of year! We left off in January looking ahead to 2020 with mixed expectations as some were feeling there was great potential laying ahead while others felt a market slow down could be predicted.  As we approach the end of February 2020 and let the data do the talking, it seems the optimists were right and there IS great potential to come.  Total active listings has decreased and mortgage rates have stayed low. To begin, let’s look at the Des Moines-area […]

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Q4 2019: Des Moines Metro Housing Snapshot

By Kalen | Published January 20, 2020

It’s a wrap! Now that 2019 is behind us, it’s a good time to take a look back at the performance of our Des Moines Metro housing market last year. From recent conversations I’ve had with leaders in the real estate and homebuilding industries, there seems to be a mixed bag of opinions about the state of the market and expectations for the coming year. Some feel that they are the busiest they have ever been and see GREAT POTENTIAL for 2020. Others are feeling a bit slower than previous years and see signs of a slower real estate market. As we start peeling back the data, what we can see right away is an overall low supply that has […]

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Q3 2019: Des Moines Metro Housing Snapshot

By Kalen | Published October 25, 2019

Like it or not, autumn has arrived and old man winter is fast approaching in Central Iowa. Speaking of crazy Iowa weather, it has actually played a very interesting role in this year’s real estate sales and market activity. Excessive rainfall in recent months helped turn some building sites into impromptu slip-and-slides, causing delays in construction and contributing to a lower-than-expected number of housing starts. Developers, too, haven’t been able to get in all the plats they had hoped and many are playing catch up following a super wet summer and spring. Currently, interest rates, talk of future recession, and a dip in home sales from prior years are each at the forefront of everyone’s mind. In reality, weather conditions […]

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Q2 2019: Des Moines Metro Housing Snapshot

By Kalen | Published July 15, 2019

There’s some welcome news in today’s market for buyers and sellers ready to make the most of the summertime house hunting and homebuilding season. MORTGAGE RATES dropped since April, and are currently at the lowest levels we have seen for over 18 months. So the market is seeing some traction as more buyers are showing an interest in making offers, due to the improved affordability! As of July 1, the total number of active single-family homes on the Des Moines Metro Market, including re-sales and new construction homes, had increased 5.9 percent to 2,370, compared with a year earlier. When you single out the active inventory of new construction single-family homes, we actually saw a decrease from 853 a year […]

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Q1 2019: Des Moines Metro Housing Snapshot

By Kalen | Published March 01, 2019

The number of single-family homes listed in the Des Moines Metro inched slightly upward in 2018, as sales growth slowed and the affordability of new construction contributed significantly to our present market conditions. There are currently 2,132 active single-family homes on the Des Moines market, translating into a 2.8-month supply and an approximate increase of 8.7 percent from a year ago. Given that a six-months supply reflects stability, we have continued to view the Des Moines Metro through the lens of a seller’s market, especially in price points below where builders are able to provide inventory. What we are seeing today is the tale of two markets, including a resolute “resale” market with the majority of listings under the $300,000 […]

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Q4 2018: Des Moines Metro Housing Snapshot

By Kalen | Published January 16, 2019

The start of a new year is always a great time for developers, builders and real estate professionals to reflect on the past and start mapping out the future. Two-thousand-and-nineteen is going to be a year of change as national homebuilders enter the Des Moines Metro and with affordability and rising interest rates being a concern. Personally, I get excited when I think about the validation of a strong market, one that is strong enough to attract the attention and confidence of national builders. At the same time, now is the time to be more intentional than ever with collecting and analyzing data on what is selling – to help determine where and at which price points to build. When […]

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Q3 2018: Des Moines Metro Housing Snapshot

By Kalen | Published October 17, 2018

The word on the street when it comes to housing is that the national market may have peaked and is starting to cool down a bit. At the same time, according to one national article on CNBC’s “Realty Check,” it’s important to follow all the facts as inventory, price point and location each play key roles. IN THEIR WORDS: “The housing recovery isn’t over, it just feels like it…” Following a period of substantial growth, it is a great time to reflect on the local housing market – where strong demographics (the region grew 1.8 percent to 645,911 residents in 2017) and a sizzling labor market (2.5 percent unemployment rate) factor in. Let’s assess our Des Moines Metro housing statistics […]

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Q2 2018: DES MOINES METRO HOUSING SNAPSHOT

By Kalen | Published July 17, 2018

It’s been a scorching summer in the Des Moines Metro! Has the real estate market been hot as well? Read on to get some inside information on how Q2 in the Des Moines Metro stacked up. Total active single family homes as of July 1st is 2,239. This is up just slightly from 2,154 a year ago at this time. Thirty eight percent of the homes on the market are NEW CONSTRUCTION listings. In comparison, at the end of Q1 2018 46.5% of the available inventory was new construction. Total inventory has been low for several years, so this is not a bad thing to have a few more homes listed in our market. A stable market is considered to […]

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Q1 2018: Des Moines Metro Housing Snapshot

By Kalen | Published March 01, 2018

With a total of 1,961 active listings of single family homes, translating into a 2.5 months supply, this ​LOW LEVEL of inventory reflects a trend we’ve been tracking over the past five years​,​ and appeared to continue in Q1 2018. Heading into March, there were 1,257 pending sales of single family homes in the Des Moines ​Metro​, or 74 fewer pending sales than a year ago. The ​TOTAL MONTHS SUPPLY – six months is considered to be indicative of a stable market – has hovered around two to three months over the past several years, and continues in that range today. The overall inventory has continued to drop and listings of ​NEW CONSTRUCTION homes are growing. Notably, of the total […]

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Q4 2017: Des Moines Metro Housing Snapshot

By Kalen | Published January 19, 2018

Two-thousand-and-seventeen was another BLOCKBUSTER year for the Des Moines Metro housing market as sales of single-family homes in the 18 communities I track reached a record-breaking high of 9,415. INVENTORY in the overall single-family housing category remained low heading into 2018, while the number of total active listings increased slightly to 2,035, compared to 1,910 at the end of 2016 and 2,043 a year prior. New construction made up 1,677, or 18 percent, of the total number of single-family homes sold in 2017, with the SUPPLY AT YEARS-END sitting at 6.7 months. That’s compared to 6.1 months of supply at the end of 2016 and 5.5 months of supply for the year-earlier period. While the price of a NEW HOME […]

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Q3 2017: Des Moines Metro Housing Snapshot

By Kalen | Published October 23, 2017

Active listings of single-family Des Moines-area homes fell at the end of Q3 2017 to 2,064, down 4 percent from 2,154 listings on July 1. Fast forwarding to October, what we now see is quite a few new homes going on the market and GROWING INVENTORY in the Des Moines Metro housing market. The total number of single-family homes sold through Q3 2017 is 7,294 existing homes and 1,279 new construction homes. When compared to this time last year, which boasted a phenomenal 7,148 existing homes sold and 1,157 new construction homes sold, the single-family market is POISED TO OUTPACE those figures as we track yet another record-breaking year! As I write, the total number of active NEW CONSTRUCTION homes […]

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Q2 2017: Des Moines Metro Housing Snapshot

By Kalen | Published August 04, 2017

The Des Moines Metro housing market continued its boom in Q2 2017 as resales of single-family homes were up and local inventory of new construction fell. The number of total active listings increased to 2,154 single family homes in Q2 – up slightly from the past two quarters and fairly typical for the spring/summer selling season. At the same time, though the total inventory grew and there are more resales on the market, new construction inventory was lower, with 732 active listings in Q2, compared to 781 listings in Q1. Pending new construction numbers are also stronger this quarter, compared to both Q1 2017 and Q2 2016. The total months supply for all single-family homes and for new construction is […]

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Q1 2017: Des Moines Metro Housing Snapshot

By Kalen | Published March 03, 2017

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 […]

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