The question I get asked almost every day is “how’s the real estate market”? I have seen positive signs this year, particularly the last two months. Buyers have the advantage of inventory where homes have been on the market for quite some time, combined with fresh listings, both overall seem to be priced competitively.
As of today, Denny Donnelly, loan originator with New Castle Homes Loans in Des Moines, states the 30 year conventional fixed rate is 3.625%, with 15 year at 2.875%. FHA 30 year fixed rate is 3.25%.The Des Moines Area Association of Realtors state that April homes sales in the metro area climbed 20 percent and pending sales spiked 23 percent over April 2011.
Overall, the market seems to be moving in the right direction. One challenge we may face for the remainder of 2012 is the possibility of homes not appraising at or above the sales price. As we see our market heat up, and listings selling more quickly, prices are naturally trending up. But when it comes to the appraisal required for the buyer’s lender, the appraiser must use comparable home sales from the last 6 months when home values were lower.
So, as we look forward to brighter days in real estate, it is still one day at a time.
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Thank you so much for sharing your thoughts!