Well ladies and gentlemen it looks like things are already bumping right out of the gates! It’s still early and we are only going into our second month of 2012 but the numbers are looking good. However let me better explain these facts. Bellow (Thanks Les sulgrove) you have a breakdown of all pending real estate transactions for the years 2009-2012. Pending transactions are accepted offers that were set to close/ did close. It’s important to remember that not all pending transactions close, but that doesn’t happen very often. I wanted to make sure you could see the rise and fall of the past 3 years in comparison to this year. This chart will show you exactly what happened after the downturn of the market.
- As you can see 2009 (in Blue) started off slow. This was the year right after the oh so popular bubble burst. It was tough but compared to other markets, Des Moines and the surrounding areas were not hit incredibly hard. The slow escalation of buyer & Seller transactions was due primarily to insecurity in the real estate market. However, it’s important to also note that massive regulation overhaul by banks were implemented in this time period. Meaning, it was more difficulty for people to procure loans.
- In 2010 (Red) you’ll see a huge jump in pending transactions between 2-12-2010/ 6-03-2010. That my friends was because of the 8,000 tax credit, and boy did it make a huge difference! However that credit both supported our market and hurt it. Yes, it would provide a substantial jump in closed transactions but as you can see the rest of the 2010 was affected negatively. People bought quick and they bought fast.
- As we roll into 2011 (Green) the market was still in a recovery process. The wake of the claps and a substantial tax credit made for an interesting year. People were buying and selling but there was still some skepticism in the market. Those who were going to buy made their move the previous year, and those who were looking weren’t rushing by any means. That being said, the market was stabilizing, confidence was returning and people were preparing to buy/ sell.
- That brings us to today. Yes, it most certainly looks like a good year. We have already surpassed previous ‘year to date’ numbers, and it doesn’t look like that will be changing anytime soon. It should also be noted that we have no tax credit this time around. This my friends is purely consumer confidence. Interest rates are still under 4% as we round out February 2012. It’s also important to note that this isn’t just a buyers market. Home prices are rebounding and sellers are getting better deals because of an influx in buyers. Meaning buyers have to compete more for the same product (i.e your home). Rounding out January 2012 and the best-selling homes are sitting at an average price point of $145,057. Though it should be said that anything between $100,000-200,000 has the best ‘Days on market” average.
At the end of the day we can look at these numbers in many different lights. But it’s important to remember that the numbers never lie. This really is a great time to buy.