2018 is very interesting in that it seems that two distinct markets are being created in the Des Moines area Multiple Listing Service (MLS). For the first quarter of 2018 (ending March 31st) these two markets are almost the exact opposite of each other. Here are some facts of what is going on in both markets:
The first thing to look at is inventory. As of March 31st, New Construction is getting to be close to half of the market! There were a total of 3,110 houses for sale on March 31st, and of those 1,341 of them were New Construction properties. That means that 43.1% of the market is New Construction houses. Nearly half of the market of houses for sale were built within the last 18 months. That is insane!
This disparity means that there is a huge difference in the two markets themselves. If you are looking for New Construction, you have a lot to choose from. You are also looking for a bigger, more expensive home. The average sale price of a New Construction property for this first quarter was $303,801.00. The average sale price of a Resale property, on the other hand, was $173,000.00.
Taking those two numbers you can see how the two markets could be so different. Think about how many people could buy a $170,000 property versus a $300,000 property. There are a lot more buyers in the Resale market right now. To that end, the New Construction market currently has 5.7 months of inventory and the Resale market currently has 1.5 months of inventory. (Here is an article where I explain what months of inventory means.) That is a huge difference!
What this means to you:
As a seller, if you are looking to sell your home, and you do not build homes for a living, I want to talk to you yesterday! Home values keep increasing. More and more buyers are coming to the table. The average house nationwide increased in value 7% over the last year. If you position your house well, a multiple offer situation could be coming your way. (42% of all of my listings in 2017 were in multiple offer situations.)
As a buyer, is you are looking for New Construction you have a buffet table awaiting you. Get a good realtor (ME!!!) who can make sure that your butt is covered from a builder. My biggest recommendation is to not use the builder’s realtor as your own realtor. Who’s butt do you think they are going to cover better? The person who gives them one deal, or the person who gives them most of their deals? If you are looking for a Resale property, get a great realtor (ME!!!). You need to be able to move fast, evaluate fast, and make sure that you are protected in this fast moving market.
Call, text, or email me today! You can reach me at 515.639.0047 or RyanLynch@KW.com. I know what I am doing, and it is my job to take away as much stress and worry from this process as I can. I am very good at what I do.
~Ryan Lynch
