End of January 2024 Market Update with Jonathan Sovath
We’re now in March of 2024 and the housing market data as of the end of January is in. The data comes from the Des Moines Association of Realtors so if you’re interested in reading more details you can go to their website. We have almost 11% more inventory than December 2023 and there was a rise in home sales by a little over 13%. The median sales price in January was $270,000 which is a 5.8% increase versus December 2023. The average days on market was 61 days which is typical as it is the transition between the end of the year and beginning of the new year and the market is a little slower but now that spring is quickly approaching, we should see the days on market decrease slowly. We have more data we can share with you if you’re interested, but if you have any questions about getting into the market and purchasing your first home or are considering selling your house this spring, reach out to Jonathan Sovath at (515) 556-7140. He is glad to help!
January 2024 Greater Des Moines Housing Market Update
Here's what you need to know about January's housing market: Mortgage rates should continue to go down As rates drop, home sales will increase Home price growth will moderate A large majority of buyers in the current market are waiting for the best opportunity to lock-in the best mortgage rate. This is understandable because it is known that the Federal Reserve is going to drop mortgage rates three times in 2024. If you read one of our latest blog posts, we included a statement from Chief Economist & Vice President of NAR Research, Jessica Lautz, stating that mortgage rates went down 0.06% at the end of last year on December 28, 2023. It is predicted that rates will drop again in late spring early summer. Since mortgage rates are predicted to go down, that means that home prices will go up. The Mortgage Bankers Association (MBA) forecasts that homes will appreciate by 4.1% and on the opposite side of the spectrum, Realtor.com forecasts that home will depreciate by 1.7%. So if you are a buyer, you may pay more for your home, however, you can lock-in a lower interest rate allowing you to pay less money each month over the length of your loan. Home Price Expectations Survey (HPES) projects that if you purchase a $400K home in January 2024, over the next five years by January 2029, you could increase your home equity by $72,405. Even if you purchase a home in the $200K-$350K range, you should expect to see a good amount of equity built up. Recap: It's a GREAT time to buy Keep saving your money to make a nice down payment If you buy now, you are likely to grow your household wealth in a short period of time At Zealty Home Advisors, we are here to serve you and provide you with the best service to receive the best results in your home buying or selling experience. If you have any questions at all, don't hesitate to reach out to us and give us a call at (515) 329-4667. Also if you’re interested in getting these housing market updates directly to your email inbox, sign up for our newsletter below by adding your name and email address. Get the latest Greater Des Moines housing market updates Sign up with your email address to receive housing tips, featured properties on the market, and market updates. First name Last name Email address Subscribe Thanks! Keep an eye on your inbox for updates.
12 Most Commonly Asked Real Estate Questions
1. Is now a good time to sell? Yes! Home prices are still expected to slowly increase and buyers are still out there ready to purchase. 2. How much is my house worth? Two things: Your home can have an appraised value and a market value. An appraiser can come to your house and tell you a figure of what the literal house and property is worth, however the market value could differ. To figure out what it would sell for at the time you list it, we will look at comparable homes that have sold in your area and get an approximate price of how much you could get. 3. What are some things I need to do to get my house ready for sale? Declutter, clean, and freshen up the curb appeal. Get rid of the extra junk that a buyer doesn’t need or want to see. Dust, vacuum, mop, clear countertops, and make the beds and couches look presentable. And last but not least, freshen up the curb appeal by possibly adding new mulch or plants to a garden bed outside, pressure wash the driveway, or add a fresh coat of paint to the front door. Impress buyers right away before they even walk inside. If they don’t like what they see on the outside, they won’t even bother walking in. 4. Would it be wise for me to have a home inspection done before listing my house? It isn’t required to have an inspection done before you list your home for sale, however, it could help you as the seller better understand the condition of the home, how much you should price it at, and if there are any repairs that need to be made beforehand to move the sale along. Ultimately, it’s not necessary but if you have an old home that hasn’t been looked at in a while by a professional, it could help you. 5. How long do you think it will take to sell my house? According to the DMAAR year end 2022 housing market reports, the average days on market was 52 days. From the data that we have so far from January to October 2023, the average days on market is 48 days so it is slightly lower than last year by a few days. 6. What’s the initial step in purchasing a home? Reach out to a mortgage lender and get pre-approved for a home loan. Once you know how much money you can get for your loan, then we can help you shop for your dream home. If you need recommendations of which lenders to reach out to, call us and we’ll lead you in the right direction. 7. What are my options if my offer is turned down? If you are a buyer and you put in an offer on a home that isn’t accepted, don’t worry! We can help you find other properties and negotiate your next offer. Also, things happen. Even if your offer isn’t initially accepted, it doesn’t always mean everything is final. Some times things fall through and don’t work out so don’t give up right away. In the meantime, we can help you find your next dream home and hope for the best! 8. How does my agent get paid when buying a house? When Realtors represent buyers, they are typically compensated by the seller’s broker sharing their commission. In our industry it’s referred to as co-operating brokerage agreements, which means that all the real estate brokerages agree to co-operate with each other to best serve buyers and sellers of homes. However, there are exceptions, when we represent buyers purchasing homes that are for sale by owners or through a non-co-operating real estate broker. In those instances, we will discuss compensation options with the buyer and do our best to negotiate with the seller or their representatives to include buyer representative compensation. Either way, all compensation is settled when closing on the property. 9. What if I sell my home but I’m not able to find a new one to buy? There are a variety of ways we can protect the seller and provide them time to find a home of their choice. First, when we meet with sellers to develop a strategy to sell their home, we also discuss what their requirements and wishes are in purchasing a new home and we get those plans going as soon as possible. If our seller finds a home they want prior to their house being under contract to purchase, we can use a Subject to Sale Addendum that will outline options and timeframes for the purchase of the new home that will be contingent on their current house being sold. If our seller receives an offer on their home prior to finding a home to purchase, we can create a contingency that allows the seller to find a home of their choice prior to their current home being closed. In both scenarios, the closing date is a bit uncertain until all purchase contracts are fully executed. In the unlikely event that the seller cannot find a home they like, Zealty Home Advisors has access to several short-term rentals for our clients to help them in their transition. 10. Home prices are going down. Should I wait to buy? Actually, nationally they are increasing! However, only slightly and at a slower rate. Economists and other experts predict that home loan interest rates will slightly decrease in 2024 so even though home prices are increasing, interest rates will hopefully decrease allowing more buyers to enter the market and find the home of their dreams. 11. How would you market my house for sale? First we start out by having a consultation with you to establish your needs and goals. Do you want to sell quickly or do you want the highest dollar amount? Would you like a 3-D rendering of your home done so potential buyers can get a virtual tour of your home online of would you prefer in-person home showings? After we discuss the important things, we will have a professional photographer take photos of your home so we can price it and list it on our website and start showing your home to buyers. We will also post a preview of your home on social media to get it more attention. 12. How frequently and by which methods do you communicate with your real estate clients? We can call, text, email or meet in person if necessary. However, we are easier to reach via call or text due to us driving and showing homes or meeting with other clients. *This house is not actually for sale. It is a stock image with an added for sale sign in the front of it.*
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