Not Everyone Is Happy About This Real Estate Market
With all the reports of homes selling in days and even hours, it’s hard to understand how anyone could be unhappy in this market. As I’ve talked about in the past, there are three types of real estate markets. Buyers Market – Balanced Market – Sellers Market. It’s all ultimately about Supply & Demand. A real estate Sellers Market is defined as less than 4 months of home inventory. We started out 2016 in a Balanced Market with right around 5 months inventory. By February 1st, the market changed over to a Sellers Market and has been in a free fall until early May, when we settled in to around 1.7 months of homes for sale. What this translates to is homes selling quickly leaving some home buyers on the sidelines getting beat out over and over again by other buyers who were quicker, willing to pay at or more that listing price, or not having any contingencies with their offer such as being subject to sale or completion of sale.
It’s not just buyers competing against other offers that is the challenge. There are some pockets of areas and price points where home inventory levels are even more scarce. Rural properties just outside of the metro are almost non-existent. Homes in the price range of $100,000 to $250,000 have between 2 and 3 WEEKS of inventory.
Help Is On The Way!
Nothing lasts forever and in the Des Moines real estate market and every year our spring market activity peaks. This peak can best be seen when Pending Sales stop climbing and begin a slow steady descent to the end of year. Last year, this peak hit on May 25th with a then all time high of 2,842 homes waiting to close. While it appears that we may have stalled out at the end of May this year with 3,154 homes in Pending status, it will be telling to see if we rebound after the holiday weekend or if we head downward. Either way, as Pendings slow down, homes for sale inventory begins to increase and this will give home buyers that have been competing or waiting for new inventory a well deserved break!
Just How Low Is Our Home Inventory?
Compared to the last 7 years, the limited home inventory as of May 31st, 2016 is almost half of what it was in 2007. If we do indeed see a slowdown in Pending sales, expect this number to begin to rise again through the summer months. Until then, if you are a buyer, continue to be ready to go at a moments notice to see a new property on the market because odds are, it won’t be there for long.
If you are a seller, get your home on the market NOW! We Still Need You!!!
~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.
May 2016 End of Month Recap Reports
(Click on Thumbnail To Download Full Sized PDF)
May 2016 Year To Date Homes For Sale
May 2016 Year To Date Pending Transactions
May 2016 Year To Date Homes Sold
May 2016 Year To Date Balance of the Market