The pandemic, which has seen many people working, studying and recovering at home for the past 10 months, may also have contributed to a record year for home sales in the greater Des Moines area.
In 2020, 16,640 homes were sold in the greater Des Moines area, officials from the Des Moines Area Association of Realtors said. That number is 16.5% higher than the 14,273 sold last year.
The Greater Des Moines market includes Polk, Dallas, Warren, Jasper, Marion, Madison, and Guthrie counties.
“I think [the pandemic] In fact, many sales were driven because people were home and either had time to look for the type of home they wanted or to prepare their home for sale, ”said Jen Stanbrough, real estate agent at Re / Max Precision in Clive. “I also think that people used their homes differently than in the past, and that made them move to houses that had space for home offices or distance learning.”
In December, the National Association of Realtors named the Des Moines-West Des Moines residential market one of the top 10 markets in the US The national group predicted that the Des Moines area would continue to do well due to the influx of new residents and faster job restoration after the pandemic that sparked record unemployment.
The record low for home mortgages also sparked a surge in home sales, according to real estate agents. While the average interest rate on a 30-year fixed-rate mortgage rose last week from its previous record low of 2.65% to 2.79%, experts believe interest rates will remain low.
Freddie Mac’s chief economist, Sam Khater, said in a prepared statement that while he expects mortgage rates to rise slightly in 2021, the rate will “remain undeniably low, support homebuyer demand and lead to continued refinancing activity” .
However, home buyers in the Des Moines area looking for new homes can find limited supply of homes for sale. Only 2,238 homes were available for sale in the Des Moines area last week, about 1,300 fewer than a year ago. In 2020, houses were on the market for an average of 49 days, the lowest average in at least eight years, according to association data. In 2019, houses sold on average within 76 days.
“We have used up our supply of homes due to increasing demand,” said Lance Hanson, former association president and agent at ReMax Concepts. “Our biggest challenge right now is finding a home to sell to our buyers.”
Potential home sellers have been reluctant to put their homes up for sale until they have a place to move, Hanson said.
Stanbrough said she expected more homes to be put on the market as the weather warms up. In addition, she said, there are likely to be more new homes for sale too.
“I think we have some people on the edge who are waiting for the new [home] Inventory come on the market, “she said. For part of 2020, some home builders struggled to get materials like cabinets and siding for newly built homes. There was also some labor shortage.
“I think things will open up a bit more in the spring,” said Stanbrough.
Ted Weaver, president of the association and broker at Re / Max Concepts, expects that 2021 will continue to be a seller’s market.
“It’s going to be challenging for buyers,” said Weaver. The buyer will be ready to pull the trigger when the home they’re looking for hits the market. If the price is reasonable, it won’t be in the market for long. “
Also in 2020, the data from the Des Moines Realtors showed:
The median sales price of a home was $ 226,000, 5% more than the median sales price of $ 215,000 in 2019.
– 60% of homes for sales were sold in 30 days or less. In 2019, 57% of homes sold in less than 30 days.
– 88% of properties sold were priced between $ 50,000 and $ 399,999.
– Sold 41 residential properties for at least $ 1 million. In 2019, 32 homes were valued at over $ 1 million.