.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;}
The recent mortgage meltdown has led to a flood of media coverage about increasing foreclosures across the country. In mid-January, RealtyTrac Inc., the leading foreclosure tracking company in the country, announced that foreclosures rose nationally 81 percent in just one year!

But as I’m fond of saying, there really is no “national” real estate market; what happens in Boston, Las Vegas or Miami real estate has about as much relevance to Des Moines as the weather forecasts in those cities.

So what’s the truth behind the Des Moines foreclosure market? Has there been a deluge of foreclosure properties lowering property values all across Central Iowa? And if so, are banks desperate to rid themselves of this dead weight draining their balance sheets, meaning steals can be found around every corner?

The answer is, of course, both yes and no. Have foreclosures in Iowa increased? Absolutely, 31 percent from 2007 to 2008. But the increase is analogous to receiving a pay increase from $10 an hour to $13 an hour. If you didn’t have much to begin with, then a 31 percent increase isn’t profound.

According to RealtyTrac, Iowa has been averaging approximately 500 new foreclosure filings a month over the past year, consistently ranking us in the bottom 20 percent of the country for number of filings. This translates into about five homes out of every 1,000. Compare that with the No. 1 state, Nevada, which has a rate of about 28 per 1,000.

In the Des Moines market, there are, as of this writing, 212 properties identified as in foreclosure or Real Estate Owned (REO), and of these 143, or 67 percent, are in the city of Des Moines proper. So, chances are, if you live in a suburb such as Waukee, Grimes or Clive, you’re probably not seeing a ton of foreclosure activity to this point. It certainly exists, but it’s not yet overwhelming.

Still, there is clear evidence of increased foreclosure activity relative to years past.

Sheriff’s sales in both Polk and Dallas counties have increased so much that they are now holding auctions twice a week to handle the increased numbers.

Last year, Des Moines saw 671 foreclosed homes sold (about 8 percent of the total market) at an average sale price of $93,000. On average, they are selling at around 94 percent of their list price. So, though deals can be had, banks are not necessarily “giving” these homes away as many suspect.

The residents of Des Moines have not been immune to real estate adversity, but we have thus far avoided the worst symptoms seen in other areas of the country, including the precipitous rise in foreclosures. Though there is an unmistakable increase in foreclosure activity, and for savvy investors there are deals to be found in what can be described as a “target-rich environment,” overall the Des Moines foreclosure market has not yet had the pernicious impact seen in the more hard-hit areas around the country.

Ted Weaver is a Realtor at Prudential First Realty in West Des Moines.