The Des Moines housing market is one of the hottest in the country. Home prices have been rising steadily for the past few years, and there is no sign of that slowing down anytime soon. According to Redfin, in December 2023, the median sale price of a home in Des Moines was $203,000, which is a 13.9% increase from the previous year. Homes in Des Moines typically sell after 24 days on the market, and they often receive multiple offers.
There are a number of factors that are contributing to the strong housing market in Des Moines. The city is experiencing a growing economy, which is attracting new residents. Additionally, Des Moines is a relatively affordable city compared to other major metropolitan areas. This is making it an attractive option for homebuyers who are priced out of other markets.
The strong housing market is good news for homeowners in Des Moines, as it is helping to increase the value of their homes. However, it is also making it more difficult for first-time homebuyers to enter the market. The supply of homes for sale is simply not keeping up with the demand, which is driving up prices.
If you are thinking about buying a home in Des Moines, it is important to be prepared to move quickly and to offer above asking price. You may also want to consider working with a buyer's agent who can help you navigate the competitive market.
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Des Moines, IA Housing Market Forecast for 2024
The Des Moines housing market has seen significant growth, with the average home value reaching $189,912, marking a 5.0% increase over the past year. According to data from Zillow through December 31, 2023, homes in Des Moines are going pending in approximately 19 days, showcasing the city's robust real estate activity.
For Sale Inventory (December 31, 2023):
626 homes are currently listed for sale in Des Moines as of December 31, 2023, providing a snapshot of the available housing options in the market.
New Listings (December 31, 2023):
202 new listings have emerged, indicating a dynamic real estate landscape with fresh opportunities for potential buyers.
Median Sale to List Ratio (November 30, 2023):
As of November 30, 2023, the median sale to list ratio is 0.997, underscoring the competitive nature of the market and the close alignment of listing and sale prices.
Median Sale Price (November 30, 2023):
The median sale price stands at $193,000, reflecting the overall value of homes that have been sold in Des Moines.
Median List Price (December 31, 2023):
With a median list price of $222,100, sellers are positioning their properties in a range that attracts potential buyers while maintaining profitability.
Percent of Sales Over and Under List Price (November 30, 2023):
29.2% of sales are recorded as going over list price, highlighting the competitive bidding environment. Meanwhile, 49.0% of sales are priced under list price, indicating room for negotiation and potential bargains.
Des Moines MSA Housing Market Forecast
In terms of the Metropolitan Statistical Area (MSA) forecast for Des Moines, the region is poised for continued growth. According to the data provided, as of December 31, 2023, the forecast shows a 0% change in January 2024, a -0.1% decrease by March 2024, and a promising 1.1% increase by December 2024. This indicates a stable and resilient housing market, reflecting the city's economic strength and appeal to homebuyers.
The Des Moines Metropolitan Statistical Area (MSA) encompasses various counties in Iowa. The MSA serves as a statistical entity that includes Des Moines and surrounding areas, providing a comprehensive view of the region's economic and housing dynamics. The size of Des Moines' housing market is substantial, driven by the city's economic vibrancy and diverse housing options.
Is Des Moines a Buyer's or Seller's Housing Market?
With the competitive nature of the Des Moines housing market, it is currently a seller's market, characterized by high demand, quick sales, and the potential for offers exceeding list prices.
Are Home Prices Dropping?
No, home prices in Des Moines are on an upward trajectory, as evidenced by the 5.0% increase in average home value over the past year. Based on the forecast and current trends, there is no indication of a housing market crash in Des Moines. The steady growth and stable forecast suggest a resilient real estate environment.
For buyers, Des Moines continues to offer opportunities, but it's essential to act swiftly due to the competitive nature of the market. With the forecast indicating positive growth, now could be a favorable time to invest in a home in Des Moines.
Should You Invest in the Des Moines Real Estate Market?
Population Growth and Trends
Investors contemplating the Des Moines real estate market should carefully examine various factors, starting with population growth and trends.
- Steady Population Growth: Des Moines has been experiencing consistent population growth, with approximately 663,381 residents in 2022. This upward trend is a positive sign for real estate investors as it indicates a growing demand for housing.
- Diverse Demographics: The city attracts a diverse range of residents, contributing to a dynamic real estate market. A mix of demographics can create opportunities in various property types, from family homes to apartments.
Economy and Jobs
The local economy and job market play a vital role in determining the attractiveness of a real estate market for investors.
- Strong Economy: Des Moines boasts a robust and diversified economy, with sectors such as insurance, finance, healthcare, and technology contributing to its economic stability. This diversity can provide stability to the real estate market, even during economic fluctuations.
- Job Opportunities: A healthy job market is crucial for attracting residents and tenants. Des Moines has low unemployment rates and continues to create jobs, making it an appealing destination for those seeking employment.
Livability and Other Factors
The overall livability of a city and additional factors can significantly impact the real estate market's appeal to investors.
- Livability: Des Moines is known for its high quality of life, with affordable housing, excellent schools, and a vibrant cultural scene. A city's livability can drive demand for real estate, making it an attractive investment location.
- Tax Benefits: Iowa offers various tax incentives for homeowners and investors, which can positively impact your financial returns from real estate investments.
Rental Property Market Size and Growth
Investors interested in rental properties should assess the size and growth of the rental market.
- Rental Demand: Des Moines has a consistent demand for rental properties, with a mix of students, young professionals, and families seeking rental units. Understanding the specific rental demographics can help you target your investment strategy.
- Rental Income Potential: The city's rental market can provide attractive income opportunities, especially in neighborhoods with strong rental demand.
Other Factors Related to Real Estate Investing
Investing in real estate involves various considerations beyond the local market. These include:
- Market Research: Conduct thorough research on property prices, historical trends, and market conditions in Des Moines. This data will help you make informed investment decisions.
- Property Management: Decide whether you will manage properties yourself or hire a property management company. Property management can impact your investment's success and your peace of mind.
- Risk Mitigation: Diversify your real estate investments to spread risk. Consider various property types, such as residential, commercial, or multifamily, to balance your portfolio.