After a bumpy ride this year, Des Moines area home sales are showing some signs of stabilization according to the July 14th article in the Des Moines Register "Home sales even with '08; prices dip" by Donelle Eller. Despite the somewhat ominous headline, the article and data paint a fairly rosy picture of home sales in the area. Some data from the Des Moines Area Association of Realtors highlighted in the article:
- June 2009 unit sales (782) almost even with June 2008 unit sales (779)
- June 2009 pending sales (924) soared over June 2008 pending sales (798)
- June 2009 average sale price ($168,750) down slightly from June 2008 average ($177,386)
- June 2009 Average days on market (106) increased from June 2008 average days of (95)
Joanne Mangold DMAAR Vice president was quoted in the article as attributing the drop in average sales prices to increased sales of foreclosed homes. Inventory still remains low according to DMAAR, at 5,851 homes or about 90% of June 2008 levels.
From what I've seen, lower market prices are keeping many sellers from listing, and also keeping those with homes on the market from being able to move them at an acceptable price. This dynamic means that some potential move up buyers are sidelined by falling prices as they can't afford to both take a loss on their homes and come up with larger downpayments demanded by today's capital markets. A lot of the activity seems to be coming from relocating buyers, first time buyers, and sellers that have resided in their homes for long enough to have built up enough equity to be able to price for the market and get them sold.
Rising days on market and lower average sales prices aside, I see the latest trends and marketplace activity as being very postive. If prices can stabilize, that could be the key to unlocking and even greater rush of sales activity.
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