News and Events

August 23, 2007

Home Sales Jump 3.2% for Des Moines Area

Experts are cautious but say the increase, along with other factors, is a good sign for the real estate market in Iowa

Home sales jump 3.2%
for Des Moines area

By Donnelle Eller
Des Moines Register Reporter

July home sales increased 3.2 percent, the first monthly sales spike in the Des Moines metro since February, a new report from the Des Moines Area Association of Realtors shows.

"I don't know if it indicates a turn in sales ... but it's obviously positive," said Carolyn Helmlinger, president of Coldwell Banker Mid-America Group Realtors.

In July, the number of homes sold increased 33 over a year ago, to 1,053. The average sale price increased 2.2 percent - or $3,781 - to $177,118. Sales volume for July climbed 5.5 percent to $186.5 million.

Iowa was one of six states to post higher existing-home sales for the second quarter, a national sales report showed last week.

Helmlinger said the drop in the number of active listings is encouraging. Inventory shrank about 1 percent, to 6,761.

The only negatives on the report: The average number of days on the market increased six days, to 83. Also, the number of pending sales dropped 9.5 percent, to 657.

Helmlinger said steady interest rates, a variety of homes on the market and strong discounts from sellers should continue to bring customers into the market.

A survey last week from Freddie Mac, the mortgage company, showed interest rates averaged 6.6 percent for a 30-year fixed mortgage, slightly above a year ago.

Also last week, the Federal Reserve Board dropped a key interest rate to reassure markets that were roiling in part because of lenders going bankrupt from skyrocketing foreclosures.

Helmlinger said central Iowa's strong economy should help it withstand the national turmoil. "I think buyers are thinking, 'Why wait? Interest rates are great, and there are more homes in my price range,'” she said. "People who have jobs buy houses."

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