The Des Moines housing market is currently considered a hot market. As of September 2023, the median home price in Des Moines reached $208,000, marking a 5.3% increase from the previous year, according to Redfin. Homes in Des Moines are typically selling after just 11 days on the market. This is still a very low level of inventory, and it is putting upward pressure on prices.
Several key factors are contributing to the sizzling real estate market in Des Moines:
- A strong economy
- Low unemployment rate
- A growing population
- Limited inventory of homes
Last year the Des Moines Metropolitan Statistical Area (MSA) boasted a population of 663,381, making it the 103rd largest MSA in the United States. Additionally, the median household income in the MSA stood at $66,421 in 2022.
These factors have led to high demand for homes, resulting in rising prices. Prospective buyers in Des Moines need to act swiftly and be prepared to pay a premium for their desired properties.
Overall, the Des Moines housing market is expected to remain strong in 2023, but there are signs that it may be cooling slightly. If mortgage rates continue to rise, we could see a more significant slowdown in the market. However, for now, the outlook is positive.
Des Moines, IA Housing Market Report October 2023
Using information from realtor.com®, as of October 2023, the median listing home price in Des Moines, IA stands at a solid $225,000. This marks a notable 4.7% increase when compared to the same time last year, demonstrating the city’s robust housing market.
For those who like to consider square footage, the median listing home price per square foot comes in at $195, which gives potential buyers an idea of what they can expect per unit area. Additionally, the median home sold price is currently at $196,000, making Des Moines an attractive destination for homebuyers.
Sale-to-List Price Ratio
In Des Moines, IA, the sale-to-list price ratio is a remarkable 100%. This means that homes in the city are selling for approximately the asking price on average in October 2023. This balance benefits both buyers and sellers, as fair and competitive prices are being achieved in real estate transactions.
Market Balance
Des Moines, IA is currently experiencing a seller’s market. In October 2023, there are more potential buyers in the market than there are available homes. This dynamic can create competition and potentially drive prices up, making it a favorable time for those looking to sell their properties. It’s essential for buyers to act swiftly and decisively in this competitive environment.
Median Days on Market
The median days on market in Des Moines, IA is 41 days. This statistic is crucial for understanding how long it takes for a property to sell on average. A lower number indicates a faster-paced market, which is beneficial for sellers. It also means buyers need to be proactive and prepared to make offers quickly when they find a property that meets their criteria.
Des Moines, IA Housing Market Forecast 2023 & 2024
The Des Moines housing market forecast by Zillow offers valuable insights into the current and upcoming trends in the real estate market in Des Moines, Iowa. As of September 30, 2023, the data indicates the following key statistics:
Current Market Status
- Average home value: The average Des Moines home value stands at $194,249, representing a 4.4% increase over the past year.
- Time to pending: Homes in Des Moines go to pending in approximately 8 days, indicating a fast-paced market.
Market Metrics (as of August 31, 2023)
- Median sale to list ratio: This ratio is at 1.000, suggesting a strong demand for homes in Des Moines.
- Percent of sales over list price: 44.4% of sales in August 2023 were above the list price, indicating a competitive market.
- Percent of sales under list price: 36.6% of sales were below the list price, reflecting some opportunities for buyers.
- Median days to pending: As of September 30, 2023, the median time for homes to go pending is 8 days, highlighting the swiftness of transactions.
Des Moines MSA Housing Market Forecast
For the Des Moines metropolitan statistical area (MSA), the housing market forecast for 2023 and 2024 is as follows:
The Des Moines MSA encompasses various counties in the state of Iowa and plays a crucial role in the region’s housing market. As of September 30, 2023, the forecast indicates a minimal change in the market, with a 0.1% increase by October 31, 2023, followed by another 0.1% increase by December 31, 2023, and a slight decrease of -0.2% by September 30, 2024.
The Des Moines MSA is composed of multiple counties, including but not limited to Polk County, Dallas County, Warren County, and Madison County. It serves as a significant economic and residential hub for the region, encompassing a diverse range of communities and housing options.
The Des Moines housing market, as indicated by Zillow’s forecast, presents both opportunities and challenges for prospective buyers and sellers. The market’s robust demand, with a notable percentage of sales above list price, underscores its competitive nature. Additionally, the swift time to pending transactions highlights the need for prompt action in this dynamic real estate environment.
As the Des Moines MSA encompasses various counties, it provides a broad spectrum of housing options and economic opportunities, making it an area of interest for both residents and investors. While the forecast indicates modest changes in the coming months, it’s essential for individuals engaging in the Des Moines housing market to stay informed and make well-informed decisions based on these market dynamics.
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.
References:
- https://www.zillow.com/DesMoines-ia/home-values
- https://www.redfin.com/city/4570/WA/Des-Moines/housing-market
- https://www.realtor.com/realestateandhomes-search/Des-Moines_IA/overview
