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Phrase of the Month: Price Reduction
The first six months of the year is over and Des Moines real estate closed sales are very close to this time last year lagging only 72 sales behind. Not bad considering the first three months were snowy and cold and the second quarter has been rainy…
Sellers are taking notice of the slower pace of sales this year and the increase of competition inventory. Price reductions are up over the same month last year for all six months in 2019 so far. And I don’t expect that trend to reverse as we head into the heat of the summer market. The month of June alone saw 1,709 price reductions (44% of our month ending inventory of 3,800 homes for sale).
Last month I reported that the number of homes coming back on the market was 18%. In June that number rose to 20%. One-in-Five sales fall through and return to the market. For the first 6 months of the year, the average back on market percentage is also 20% compared to 16% last year.
Homes for sale inventory levels have been on the upswing since July of 2018. This would lend one to believe that more homes are entering the market, however, the true result of the increase in inventory is a decrease in the number of homes going under contract.
Bottom Line – There is no doubt that the market is active – we are in an active spring market even though it’s now July 1st. But the local real estate market is operating differently from years past. And with home mortgage interest rates dipping again, things could change quickly… If you are still thinking about selling your home, what are you waiting for?
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June Metro Single Family Resale Data
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June Metro Condo/Townhome Resale Data
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June Metro Single Family New Construction Data
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June Metro Condo/Townhome New Construction Data
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Click This Link for the 2018 Des Moines Real Estate Year End Market Recap
~Les Sulgrove, Vice President
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.