Houses for sale in Des Moines area selling quickly
BUSINESS RECORD STAFF Nov 30, 2020 | 9:36 pm
2 min read time420 wordsAll Latest News, Real Estate & Development
Houses were on the market in the Greater Des Moines area an average of 43 days in October, the smallest number of days since July 2018 when homes were sold on average in 44 days, Des Moines Area Association of Realtors data shows.
In October 2019, houses were on the market an average of 53 days, according to the association. In September, houses were on the market an average of 46 days.
The Greater Des Moines market includes Polk, Dallas, Warren, Jasper, Marion, Madison and Guthrie counties.
“The Des Moines October real estate market was moving fast again with properties selling very quickly,” Lance Hanson, the association’s president, said in a news release. “Over 1,000 properties sold in less than 30 days.”
Hanson said low interest rates on home mortgages also continue to drive home sales. Last week, the average 30-year fixed mortgage rate was 2.72% with points and fees at 0.7%, according to Freddie Mac, the federally chartered mortgage investor. The average mortgage rate is nearly a full percentage point lower than it was a year ago.
Just 2,566 houses were on the market in October, a 33% drop from a year ago and slightly less than the 2,640 for sale in September, association data shows.
In October, 1,547 houses were sold in the Greater Des Moines area, outpacing sales a year ago by nearly 35%. In September, 1,439 houses were sold.
Local home-sale trends continue to mirror what is occurring nationally. In October, the sale of existing single-family townhouses, condominiums and co-ops rose 4.3% from September to a seasonally adjust 6.85 million, according to the National Association of Realtors. Sales were 16% higher than a year ago, according to the group. In addition, 72% of homes were on the market for less than one month.
“Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year,” Lawrence Yun, the national group’s chief economist, said in a news release. “With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.”
The Des Moines Realtors group’s data for October also showed:
• The median home sale price was $235,000, nearly 20% higher than a year ago. In September, the median sale price was $229,700.
• The majority of homebuyers in October – 1,167 – used conventional financing to purchase their new homes. In addition, 173 paid cash.