I thought I would start this post out by reporting on what I am hearing from you. I have built my business around creating long term relationships with my clients. I do that by calling every single one of you each quarter and seeing how you are doing and if there is anything I can do to help you.
Right now people have time on their hands. My calls have been longer than they normally are because many people just like having someone to talk to and take their mind off of what is going on.
In the hopes of not sugar coating what is happening, I have had people tell me about rough situations they are in. I have even made deliveries to clients that can’t go out. I want to focus on what the vast majority of people I am talking to are saying.
Over and over again, I am hearing people tell me about how nice it is to slow down, spend time with family, and not be bothered by drama at the workplace. Almost no one ever plans to take 4-6 weeks off of work in their life. It turns out, that much of a break can shift your perspective.
This terrible situation that we are in is giving me extreme hope. So many of the people I speak with are telling me they are using this time to reconnect, de-stress, and find a happier set point. I absolutely wish this situation we are in had never happened. If we can come out of it happier and less focused on petty grievances, I think that would be amazing.
On to the market:
Frankly, this is unexpected. Many of the numbers for March are better for 2020 than for 2019. In a way this does make sense. We basically got Spring in March, and almost no snow. Interest rates are at historic lows. People are ready to buy.
There were 150 more homes for sale in March 2020 than March 2019. The average days on market across all of DMAAR (Des Moines Area Association of Realtors) was only 38. Single family and condo resales have been in, and still are in Seller’s Markets. Through March, single family resale homes only had 1.7 months of inventory. Condo/town homes resales had 2.2 months of inventory.
This means that if everything stayed consistent, all of the current homes for sale would sell in 1.7 months, or 2.2 months for condo/town homes. For reference, up to 4 months is still a Seller’s Market.
The big news is that New Construction Single Family homes were in a Seller’s Market in March (just barely) at 3.9 months of inventory.
Basically, people are taking advantage of what could be the lowest interest rates on mortgages ever. By ever, I mean looking into the future as well. There were points in March where a 30 year mortgage was below 3%. To quote The Princess Bride: “Inconceivable!”
If you are a buyer, you can get the cheapest money there has ever been for a mortgage. If you are a seller, March 2020 sold more houses than March 2019.
April has absolutely seen a slow down in showings. Houses are still selling every single day, though. It will be very interesting to see what April’s final numbers are. I have already seen an uptick in showings just this week. I will keep you posted!
I love doing what I do. I love looking at the market, and I love building relationships with the people that I get to help. Let me know how I can help you. Call me today. You can reach me at 515.639.0047 or RyanLynch@KW.com. I am good at what I do, and I want to help you.
~Ryan Lynch
