We Have Entered The Zen Zone
As 2016 winds down, the Des Moines real estate market is finally balanced.
It has been 307 days since there has been over 4 months of inventory for sale in the Des Moines real estate market. Months of Inventory is affected by two factors; the number of homes for sale and the number of offers accepted during the previous 30 days. In its simplest form, this is Supply and Demand.
What this means is that for the first time since January 25th, a buyer and seller have equal advantage. In a balanced market, home prices tend to stabilize and buyers have an adequate selection of properties to search and choose from. Most sellers in turn become buyers once their home goes under contract and this gives them the ability to go on the market knowing they will also be better equipped to find a home. This past year homes were selling quickly and most sellers would not even consider a subject to sale offer. The balanced market gives everyone a chance to breath, search and potentially make offers contingent on the sale of another home. With a month to go, it is unlikely that the market will shift completely to the other end of the spectrum to a Buyers Market.
Other circumstances affecting the Des Moines real estate market is the long talked about rise of mortgage interest rates. Predicted to happen right after the Presidential election, rates began to rise on November 8th. Economists have continually said that mortgage interest rates were going to rise by the end of the year. The Federal Reserve has played a part in keeping rates low in an effort to prevent the economy from heading towards inflation. With the December meeting of the Fed coming up, it is uncertain whether rates will raise at that time, but one thing is for certain, the days of the 3% 30 year fixed rate mortgage is probably behind us.
9 Reasons To Sell (And Buy) Now Instead Of Waiting Until Spring
The value of knowing what is happening now always trumps guessing what will happen in the future.
- Mortgage interest rates will continue to rise, decreasing your buying power in the spring
- Home prices tend to stabilize in a balanced market helping buyers to not higher for their home purchase
- Home inventory levels are predicted to continue to be as low or lower than last year
- As a buyer, you are not under the gun to make on the spot decisions or be in multiple offer situations
- As a seller, you will have the least competition against other sellers now than you will have at any other time during the year
- The economy appears to be strengthening but there is guarantee that inflation won’t return
- Subject to sale contingencies are more acceptable in a balanced market
- A stable market helps homes make appraisal values
- Homes can show very well during the holidays
~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.
November 2016 End of Month Recap Reports
(Click on Thumbnail To Download/View Full Sized PDF)
November 2016 Year To Date Homes For Sale
November 2016 Year To Date Pending Transactions
November 2016 Year To Date Homes Sold
November 2016 Year To Date Balance of the Market