September 2011's home sales for the greater Des Moines area including Ankeny, Adel, Bondurant, Carlisle, Clive Cumming, Indianola, Johnston, Urbandale, West Des Moines, Windsor Heights rocketed 36% ahead of last year's and were up approximately 5% month on month as well.

The average sales price remained essentially flat at $169,920, a .4% rise from the prior year. Days on market remained eseentially unchanged year on year, but fell eight days from 109 in August to 101 for the month of September.

Sales in September compared to the prior year were still skewed by the effect of the Home Buyer Tax Credit which expired May 1 2010 but allowed buyers to close by September 30th 2010. October 2011 will mark the first month whereby meaningful comparisons can be made to the year prior. The Des Moines MLS had 5,375 homes on the market in September, 159 homes fewer than in August and 489 units fewer than a year earlier.

The top selling price categories were as follows:

1. $200,000 - $249,900  102 units
2. $140,000 - $159,900  86 units
3. $120,000 - $139,900  74 units
4. $160,000 - $179,900  68 units

The top means of financing used were:

1. Conventional 344 units
2. FHA   199 units
3. Cash  168 units
4. VA 33

24 homes sold priced $400,000 or higher out of an approximate inventory of 360 units, indicating a 15 months supply.

134 condo-townhome units sold out of an approximate inventory of 960, indicating a seven months supply.

Data provided courtesy of the Des Moines Area Association of REALTORS covering the period 09/01/11~09/30/11. All rights reserved.

A good thing just got better! The good people at the IFA, or Iowa Finance Authority have upped the amount of the incentive for qualifying first time homebuyers buying homes in Iowa to $3,500 from $2,500. According to the IFA's website "The IFA's mission is to finance, administer and preserve affordable housing and to promote community and economic development for Iowans. IFA is a self supporting agency."

The Iowa Finance Authority grant can be used for closing costs, down payments or for minor repairs. Currently, it is one of the few subsidies available for first time buyers, but it must be used for with an IFA loan product.

The IFA issued this press release on the program today:

Effective Thursday, October 13, the Iowa Finance Authority's FirstHome Plus down payment assistance grant will increase from up to $2,500 to up to $3,500 until December 31 or until funds are expended. 
 
Affordable homeownership is vital to providing young professionals and working families with a safe place to call home and in turn stimulates neighborhoods and communitites throughout the state. 

The Iowa Finance Authority strives to make our homeownership programs as accessible and affordable as possible. The $1,000 in bonus down payment assistance will address one of the biggest barriers Iowa home buyers face, which is finding the funds necessary for down payment and closing costs.

Attention Lenders:
Important $3,500 Down Payment Dates to Remember:
For a home buyer to be eligible to receive the $3,500 in FirstHome down payment assistance, the following deadlines must be met.  
October 13: $3,500 FirstHome Plus reservation period begins
December 31, 2011: Final reservation deadline
February 29, 2012: Closing deadline
March 9, 2012: Delivery of program compliant and secondary market eligible mortgage
Please note that there are no extra steps to apply for the $1,000 in additional down payment assistance. All FirstHome Plus reservations made between October 13 - December 31 will automatically be applying for the $3,500 until funds are expended.
 
For your convenience, a home buyer flyer announcing the $1,000 in additional down payment assistance is available here and information is available on the Iowa Finance Authority web site.

If you'd like more information about Iowa Finance Authority FirstHome Plus Downpayment Assistance grant please call me at 515-271-8999. The IFA program is administered through a numbered of local lenders.

The Des Moines area and no doubt the nation was shocked to hear the news that today, Friday April 8th at 2pm a real estate agent, Ashley Okland was shot while holding open a townhome project in West Des Moines. The news was especially upsetting because the young woman was only 27 and West Des Moines is generally considered by many measures to be one of the safest areas of the metro and probably ranks high nationally for its low rate of violent crime. Additionally we are a fairly small board and a close knit community where most agents know each other as there are only around 1300 agents on our entire MLS. We've heard news of Realtors in other localities killed or harmed while showing houses or holding opens around the nation and we talk about safety and the possibility of things like this happening but I think that does little to blunt the disbelief, sorrow and outrage that we in the community feel this evening.

Initially the reports were that the agent had been shot twice but was alive, tragically the news came later in the afternoon that the young agent with Iowa Realty had succumbed to her injuries around 3pm. READ LOCAL NEWS STORY HERE

No suspects have been identified but police hinted that it may not have been a random incident and are urging calm. Iowa Realty put out a press release expressing shock and sorrow and announced it would cancel all open house scheduled for the weekend.

From her photo Ashley appears the picture of youthful enthusiasm and happiness, a beautiful young woman with a bright and prosperous future ahead of her. Eventually, we'll likely find out what motivated the misguided soul who took her life, but we will forever be left with the tragedy of a life and career cut short by violence.

Many agents have taken to Facebook to post messages of condolence, fear, incredulity, sympathy and sorrow. The posts run a gamut of emotions and reflect the frustration, consternation and distress we in the local real estate community are feeling today.

I did not know Ashley personally but I'd like to express my condolences to her family, friends and coworkers for their loss. It's a sad night here in Des Moines. We've lost somebody, and we all feel it.

***Please Help if you have information regarding the shooting death of Realtor Ashley Oakland. Polk County Crime Stoppers has upped the reward amount to $10,000 for information leading to an arrest in the case. Anonymous tips can be made to 223-1400 or by calling West Des Moines police at 222-3344.***

Residential real estate sales statistics for 2011 in Ankeny, Altoona, Clive, Des Moines, Indianola, Johnston, Pleasant Hill, West Des Moines, Windsor Heights and surrounding areas from the Des Moines Area Association of REALTORS for the period from 02/01/2011 to 02/28/2011 show drops in both unit sales and prices and a hefty increase in days on market.

In February 2011 417 units sold vs. 431 units for February 2010 or a -3.2% drop. This is actually encouraging in a way because last year's results were bolstered by tax credit incentives which have mostly disappeared this year. The fact that sales haven't cratered is probably cause for celebrating.

Top gaining areas were:

1. Indianola +50%
2. Altoona +37.5%
3. West Des Moines +26.5%

Biggest declines were seen in:

1. Pleasant Hill -27.3%
2. Waukee -25%
3. Urbandale -12.5%

Prices logged a slightly greater decline than unit sales percentage wise with prices falling -3.3% year on year from $150,525 last year to $145,508 this February and down -2.7% month on month from January 2011's $149,522 figure.

Biggest price gains:

1. Urbandale +30.1%
2. Ankeny +15.4%
3. Clive +1.7%

Biggest price declines:

1. Indianola -38.3%
2. Johnston -20.8%
3. Des Moines -15.4%

Days on market, or DOM, leaped 9 days from 115 last month to 124 in February. I'm pretty sure that's the highest days on market since I became an agent in 2003. From what I've seen there are a lot of owner occupant sellers who have a hard time competing price wise with foreclosed and short sale properties so they list high and sit on the market, then facing the reality of the situation, lower prices after being on market for a time, leading to sold listings logging greater DOM. Additionally however we've seen lots of new construction offered by builders floowing this same pattern.

Most popular forms of purchase for February 2011 were:

1. Conventional : 184 units
2. Cash : 126 units
3. FHA : 86 units

Hot price categories were:

$29,999 and under : 51 units

$200,000 to $249,999 : 40 units

$120,000 to $139,999 : 38 units

Among listings priced $400,000 and up 14 sold out of an inventory of appx.  343 units.

In the town home/condo category 65 units sold out of an inventory of appx.  991 units.

The housing market is clearly still struggling but properties are selling all the same. at 417 units last month, that's about 15 units a day sold all month long. For sellers wondering if there are buyers out there, the answer is yes. For buyers who want to know if now if the really good buys are gone the answer is, not by a long shot.

Data courtesy of the Des Moines Area Association of REALTORS covering 02/10/2011 ~ 02/28/2011. All rights reserved.

I'm not a big fan of chain restaurants in general. So several years back when Cici's Pizza came to town it was no big deal for me. There were lots of ads announcing the opening and many mailers with coupons which I ignored. They were in town for about a year and a half before we tried it for the first time. We were out shopping one day in Haymarket Square on Merle Hay Rd and our three kids were ravenous. Our oldest chirped "let's go the Cici's Pizza!" as we drove by and our two others immediately joined in chorus. It just so happened that I had two coupons in the car for a free kids buffet with the purchase of an adult buffet, and our youngest being under three would be free. The buffet you should know is only $4.99 so our whole family would be eating for around $10. That tipped the balance for me so we parked and went in. The buffet was simple but complete, with salad, pasta, bread sticks, pizza and dessert plus there is a game room to boot for after. I have since been back several times, though not with all three kids. I usually make it a special event and only take one at a time which they enjoy. Every time I've been the restaurant has been clean and well lit, the staff has been accomodating, and the food has been excellent.

The staff at the Haymarket Square location really could not be friendlier. They smile and ask you if you need anything constantly. There are twenty kinds of pizza on the menu but they will also make special orders. Anytime you approach the buffet they invite you to order something if you don't see what you want up there. I'm partial to pepperoni with Jalapenos and not seeing it I decided to take them up on their offer to make a fresh pie on demand and ordered one. They seemed overjoyed I asked and went to work like lightning. About seven minutes later they brought the steaming hot pizza to our table and invited me to take what I wanted. They then put the rest on the buffet.

To top it all off they have great desserts as well consisting of really gooey, hot cinnamon rolls, apple and blueberry dessert pizza and scrumptious brownies. If they are ever out of what you like they will cheerily make it in a flash and bring it right out to your table. I really have to limit my visits there because the food is so tasty I end up eating way more than a middle aged guy should. The fact that the food is so good that it inspires you to indulge is perhaps the only drawback to Cici's. I've taken a few friends there as well as they have a $9.99 special for two adult buffets with two drinks. All have been similarly impressed.

On my last visit I took my son Esden who can be seen ladling plain pasta into a bowl (right) and forcing the last few bites of his pizza into his mouth (below) so he can take his two quarters he's been saving to go have fun in the game room behind him.

We go the Haymarket Square Cici's because it is convenient to our home, but there is another location on Des Moines' South side. So if you enjoy pizza and are looking for an affordable and fun place to take your family in the Des Moines area head on over to Cici's. They do not dissapoint by any measure and offer delights for both young and old. Please see below for locations in the Des Moines area:

The sales figures for the first month of 2011 are in for Altoona, Ankeny, Clive, Des Moines, Indianola, Johnston, Pleasant Hill, Urbandale, Waukee, West Des Moines and surrounding areas and they give cause for optimism. Unit sales were ahead of last year which is no small feat considering last January's sale were bolstered by federal tax credits for first time and move up buyers. Sales rose 2.1% this January a modest gain but again pretty significant considering. Sales were up slightly from December's 378 units as well

Another positive was average was that average sales prices rose as well, averaging $150,871 climbing 6.9% year on year but down 6.7% from December's $161,420 average.

According to DMARR, or the Des Moines Area Association of REALTORS, there were an average of 5,086 homes on the market which they claim is the lowest level of inventory since December 2009. Days on market were a 115 in January 2011, up a bit from December's 113 days on market, and up dramatically from 89 in January 2010.

The hot price categories for sales were:

• $200,000 ~ $249,999         42 units sold
• $120,000 ~ $139,999         38 units sold
• $140,000 ~ $159,999         37 units sold
• $160,000 ~ $179,999         37 units sold

2 homes priced $400,000 or higher sold out of appx. 313 on the market. 54 condo/townhome units sold out of appx. 964 available.

Popular methods of purchase were:

• Conventional: 165 units
• FHA: 103 units
• Cash: 93 units

January's sales were a good start for the year and hopefully portend a pickup in the market. Affordability seems to remain at reasonable levels meaning good conditions for buyers and inventory is low indicating that "There's less competition for sellers right now," according to Les Sulgrove DMAAR President.

Data courtesy of the Des Moines Area Association of REALTORS 01/01/11 ~ 01/31/11. All rights reserved

This is the third in a series exploring the ins and outs of purchasing properties at a Sheriff's Sale or as they are sometimes called Forfeiture Auctions. Here are the first two:

Central Iowa Sheriff Sale or Forfeiture Auction procedures and locations

Should I buy a property at the County Sheriff sale or wait until it becomes an REO?

Many would assume that if they purchase a property at a Sheriff Sale paying cash by 3pm on the day of the sale, as required, that they would then get a deed to the property, in this case a Sheriff's Deed. However, that may not be the case. According to Iowa foreclosure law, a person who owns a homestead, a property they occupy as a primary residence, they have from 6 months to a year to redeem the property by paying all back payments, penalties and interest in full. This is called a right of redemption.

If you purchase a property at Sheriff Sale that has a right of redemption, you will not get a deed. You will instead be issued a Certificate of Purchase. You will need to retain the original Certificate which you can exchange for a Sheriff's Deed when the owners right of redemption has expired. If you lose the Certificate you will need to get a court order directing the Sheriff's office to issue you a duplicate which you can exchange.

If there is no redemption period or the defendant has elected foreclosure without redemption then the Sheriff's Deed will be issued to the highest bidder upon receipt of the funds by the Sheriff.

Once you have the Sheriff's Deed you can record your ownership at the county courthouse, but not until. This special circumstance with right of redemption in Iowa is yet another reason a buyer should seek professional legal advice before considering purchasing a property at a Forfeiture Auction.

Home warranties protect a property owner against repair and replacement costs for appliances and other home systems that may break down or need maintenance. Home warranties are insurance products and are regulated in Iowa by the Iowa Insurance Commission. By state law real estate agents are prohibited from receiving compensation from the recommendation of these products.

A home warranty can be purchased by either a home buyer or current home owner. If a buyer is making an offer on a property they can often ask the seller to pay for a home as part of the purchase, or if the seller refuses the buyer can include the warranty in the purchase. On new construction builders typically furnish a one year warranty for their new homes and those plans can operate differently that those we are discussing here. Warranties from private warranty companies are different in that they cover homes of any age although they vary widely in what they will repair. Buyers should:

Find Out What the Home Warranty Covers

Standard home warranty coverage differs quite a bit by provider. Many standard home warranties cover plumbing, appliances, and heating and cooling systems. Some policies cover the roof. You usually have to buy extra coverage for private wells and septic systems and other high-ticket items. In order to understand what may or may not be covered a buyer should read the warranty brochure completely so there are no surprise when a repair is needed.

In a Home Sale, the Buyer and Seller Might Have Different Coverage

A standard policy might not pay a seller's repair bill if the furnace dies before closing, but it will cover the buyer if that happens after the sale. Look closely at the coverage offered for your particular situation. Again, if a seller has a warranty in place, a buyer should review the brochure to make sure it suits their needs. If it does not a buyer may want to ask for a different warranty.

How Much Does a Home Warranty Cost?

Cost varies, but many standard home warranty policies range from $350 to $450--an their are extra charges to cover special systems or multiple units as in a duplex, tri-plex or four plex. To compare policies, grab a sheet of paper and list household systems down the left-hand side. To the right, make a separate column for each policy and check-off which items are covered by each policy.

How Long Is The Home Covered?

Most home warranty policies are effective for one year with an option to renew coverage upon expiration. The renewal cost is often higher than the fee paid for the initial policy. Ask each provider what its current renewal fee is so that you can compare costs.

What's a Co-Payment?

A co-payment is the amount you'll pay when a repair person comes out to fix a failed system. Similar to a health insurance co-payment, it generally covers the entire cost of the repair. Co-payments. vary but are often in the range of $55 to $90 per visit.

Does the Warranty Provider Have Contacts in Your Area?

Make sure you won't have problems getting service if something fails. I know of one instance where a major home warranty company told a home owner that they did not have someone to send out for a water heater repair. The owner tried to get service for some time. Eventually, the policy expired and the owner was told the company couldn't help. They did finally agree to honor the repair, but only a percentage of it. The bottom line: find out now if the company can provide service.

A (Good) Home Warranty Can Help Sellers

A home warranty makes a home more attractive to potential buyers, especially if appliances and other items are aged. If two homes are equally attractive to a buyer, the one that offers a home warranty might come out the winner. Providing a warranty offers a little peace of mind, since it gives buyers some help if something fails after closing. The price of a home warranty is minimal, and since the policy can be paid for at closing you're not out any cash until the home sells.

A (Good) Home Warranty Can Help Buyers

Home buyers are sometimes cash-shy after coming up with the funds required for closing, so making unexpected repairs a few months down the road can be a burden. If you can't afford to pay for a home warranty, ask the seller to include it as part of the purchase price. If the seller won't pay the entire cost, try to negotiate a split. Home warranties aren't perfect, but they do help protect you from the costs of major repairs.

I strongly recommend home warranties for both buyers and sellers. I can recall multiple instances where sellers and buyers avoided substantial repair costs because they had a warranty in place. If you are buying or selling a home that is five years old or older, you should make a home warranty a part of your equation.