Des Moines Real Estate Market Peaks
The month of May recorded the highest number of Pending transactions in que to close in over 25 years with 3,246 anxious home buyers and sellers crossing their fingers. It’s safe to say that the vast majority of those Pending sales have closed or will shortly. Note the similarity of the Pending chart to the image above.. any guesses where the market is heading? And to those of you that want to jump to the conclusion that the sky is falling or that real estate sales are dead in the water… you couldn’t be farther from the truth. We are indeed seeing the market begin its slow and predictable decline towards fall but there are other factors that are making this real estate market still appear to be on fire.
What price ranges are still hot?
The last couple of months, I’ve been showcasing the Month of Inventory report broken down by price ranges. This showed where the hottest price points were and in the month of May every single price point was seated deep into a Sellers Market. What you see below in this months report is a combination of May and June Month of Inventory by price point. While every single price point has seen an increase in months of inventory, it’s not until you get the above $350,000-$400,000 that the market changes to a Balanced Market. In fact, the first point where it becomes a Buyers Market is in the $450,000 to $500,000 price range. Large swings are common in the upper price ranges because there are fewer homes for sale to begin with. Month of Inventory is calculated by taking the number of homes for sale and dividing that by the number of homes that sold in the previous month. In the $150,000 to $200,000 price range there were 307 homes for sale and 257 went under contract (Pending) in June. That equates to a 1.2 month of inventory. In contrast, there were 100 homes for sale above $700,000 and only 5 went under contract the month of June. Bottom line, the majority of homes selling in our market right now are under $350,000 and yes, we are still seeing homes sell within hours and the occasional multiple offer situation.
~Les Sulgrove, Broker
VIA Group REALTORS
If you are interested in selling your home or purchasing a home, give me a call! I will help you determine your best strategy based on your local market data.
June 2016 End of Month Recap Reports
(Click on Thumbnail To Download Full Sized PDF)
June 2016 Year To Date Homes For Sale
June 2016 Year To Date Pending Transactions
June 2016 Year To Date Homes Sold
June 2016 Year To Date Balance of the Market