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

I love to help people and this is a great way to get assistance with buying your first home. Here is more information:

The Federal Home Loan Bank of Des Moines (FHLB) is giving grants to home buyers of up to $7,500 towards the purchase of their first home. Throughout 2020 they will be giving grants up to $8,000,000 to many homeowners.

You have to be earning 80% or less of the median income for the area where you are purchasing your first home. This limit is adjusted based off the household size (do you have a spouse, children, etc). You can buy single family residential homes, condos, townhomes, and manufactured homes with this assistance. This money can be used for closing costs, down payments, or even to make repairs on the home.

Finally this money is subject to a five year deed restriction. Meaning that if you live in the home for at least five years, you never have to repay the money. In that first five years it is a sliding scale. That means that if you sell in year one, you would owe more of the money back than if you sell in year four.

I am making this math up: say you sell in year one, so you have to pay 80% back, on a $7,500 grant that means that you would have to pay back $6,000 and $1,500 is forgiven. Year two it would be 60% or pay back $4,500 and $3,000 is forgiven. Year three it would be 40% or pay back $3,000 and $4,500 is forgiven. And so on until year six when you will never have to pay the money back. Also, if you sell the home at a loss, sell to another low to moderate income buyer, or lose your house through foreclosure you can get the balance forgiven by following FHLB’s process.

This could be a great way to start building equity instead of just paying someone else’e mortgage (rent). With how low interest rates are right now you could put yourself into an incredible position for building future equity.

If you want to see my opinion on why you should look at a 15 year mortgage, see my post on What Type of Mortgage do You Have?

If you are interested in this program you can go to the Homestart Homepage right here.

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