2018 has been crazy. We have seen more snow than we have seen in the past few years, and yet more houses are selling than in 2017, which was itself a record breaking year. Here are some interesting numbers to note as of February 28th, 2018 in the Des Moines real estate market:
For all properties on the Des Moines Multiple Listing Services (MLS) it is still a Seller’s Market – Currently there is 2.7 months of inventory
For resale properties it is even a stronger Seller’s Market – Currently there is 1.8 months of inventory
New Construction is an entirely different market, a Buyer’s Market – Currently there is 6.7 months of inventory
Months of inventory is a way of looking at a market that is based on average sales over the last year. Let’s say that in the last year, in a particular area there were 120 houses that sold. That means that on average 10 houses sell per month. If there are currently 25 houses for sale, you have 2.5 months of inventory. Because if 10 houses sell per month, 25 houses should sell in 2.5 months. Up to 4 months is a Seller’s Market. 4-6 months is a Balanced Market. 6+ months is a Buyer’s Market.
Looking at that explanation, Resale Properties right now are really low at 1.8 months. If you have a property that is in an established neighborhood, there is extremely high demand for you to sell right now. On the other side, if you are a builder and building brand new homes you have more competition right now and your buyers are much more picky.
What does this mean to you? If you own your own home and have been thinking about selling, you can beat the crowd by getting it on the market now. With warmer weather, more and more people will be putting their houses on the market. Don’t wait and have more competition for your buyers. Get your house on the market now to take advantage of very advantageous market conditions.
Give me a call. I am highly trained and can position your house to sell, instead of just putting it on the market for sale. You can reach me at 515.639.0047 or RyanLynch@KW.com.
~Ryan Lynch
