Des Moines Housing Market Update: 2024 Q2

How did the spring market go in 2024?

In Des Moines and the surrounding areas, we are seeing some odd real estate quirks. On one hand, we don’t have a ton of inventory in lower price points, and the average price keeps rising. On the other hand, sales have slowed since the pandemic. How do we even make sense of this?

First, let’s look at where we’ve been. Some past market updates you may want to read:

From the numbers, here are the trends I see today (most of which we saw in the first quarter this year, too):

  • The second quarters in 2023 and 2024 are remarkably similar.
  • Just over 13,000 homes were sold in 2023. We are still on track to be just under that number for 2024.
  • Change from 2024 1st quarter: Anything below $350,000 is still a strong seller’s market. In other words, our starter inventory is still lacking. Expect to be competing if you’re looking for a home at that price point.
  • Change from 2024 1st quarter: In our moderate to slightly higher price points, $350,000-$700,000, we’re looking at a balanced market.
  • In luxury price points, above $700,000, it’s a seller’s market.
  • The average price of properties sold went back up in the second quarter.

Showing us back in a seller’s market between $250,000 and $350,000 is more standard vs what we saw in the first quarter. In fact, all the trends above make sense when we look at historical numbers since 2016. In general, the lack of availability of housing below $350,000 will continue to constrain the market.

Are you a “number” aficionado like me? Here are the homes sold in the second quarters from 2022 through 2024. 

The chart below shows where we have been so far in 2024. You can see the seller’s market, balanced market, and buyer’s market price points below. 

What will we see through the rest of 2024?

Well, while my crystal ball rarely functions perfectly, I will take a stab at this question.

  • If you’re waiting for interest rates to drop before you buy: DON’T. If your life circumstances are such that now is the time to buy a house, go ahead and buy. We’re not sure rates will drop this year, and prices are going up.
  • Looking to sell? Some properties do sell within 24-48 hours of hitting the market, but many do not. You’ll want to make sure your home is show-ready and priced well before listing for sale.

Changes to how real estate will be practiced

The REALTOR® profession overall will be changing.
For Sellers:

If you’ve seen mention of home prices dropping due to commission structure changing in the news, and you have questions, please don’t hesitate to contact Jessica, Narda, or me for up-to-date information. This applies even if you’re not looking to buy or sell any time soon!

Want to read more about the potential changes and what we know so far? You can check out some of our thoughts here:

For Buyers:

We REALTOR®s are now required by the state of Iowa to sign a buyers representation agreement with you before we can show you a home. This agreement will lay out the duties we owe to you as your REALTOR® and the duties you owe to us as our client. The exceptions are when we are hosting an open house or when we are representing the seller.

Before asking you to sign such an agreement, we will offer to spend a few minutes reviewing it with you, as we want you to know what you are signing.

The Bottom Line

If you think 2024 is the year for you to move, contact us! We are happy to meet for a coffee and chat.

Considering a move? If you have a REALTOR®, that’s great.  If you don’t, the Home Sweet Des Moines team (brokered by Realty ONE Group Impact) is ready to help. Here’s how to contact us:

We’d love to help. And even if you’re not moving, feel free to say hi. We love all our clients, past, present, and future!

Enjoy your summer! 

Licensed in the state of Iowa. Home Sweet Des Moines - Realty ONE Group Impact

* Sales prices in thousands. This data includes all residential properties in the Multiple Listing Service (MLS) for the Des Moines Area Association of Realtors (DMAAR). For Sale by Owner homes and lot listings may not be included.
* Seller’s markets are those with 0-3 months of inventory. Balanced markets are those with 3-6 months of inventory. Buyer’s markets are those with 6+ months of inventory.
*  Months of inventory were determined by the last three months of sales numbers.
* All numbers were run on 01-July-2024.

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