Low interest rates indicate a promising housing market through winter and spring

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WAUKEE, Iowa — The pandemic resulted in a real estate market boom. While home sales normally drop off going into the holidays, the market has slowed down only slightly this year. Sellers continue to get multiple offers for houses, just not as many as during the summer.

The average price of a new home in the U.S. has risen quite significantly in the last few years. In the Des Moines area, it went from about $196,000 in 2019 to around $260,000 in 2021.

Lack of inventory is the main factor in pricing. A local real estate broker said that it is still difficult to get supplies like lumber, and getting appliances like washers and dryers into the homes is causing a hold-up.

According to the Des Moines Area Association of Realtors, the number of homes available in 2019 was around 4,000. Now in 2021, it is just over 2,000.

Real Estate Broker, Jim Hibbs thinks that there is no way the market boom is over quite yet.

“I think you’ll see the market will still remain very robust. We’re still going to be short on listings. And we’re roughly 2,000 short right now from where we were two years ago,” Hibbs said. “We expect to be still short on inventory, come say May of next year. Interest rates that’ll help us decide whether or not we’re going to have a busy spring but I do anticipate interest rates will hold and inventory will remain tight and people will still be looking for a home.”

If someone is looking to sell right now, the price has to be realistic. Fewer homes are selling above list price at this time of year as winter is a slower season.

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