EXIT Realty North Star's Blog

Comfortable Living in this Easter Lake Townhome

Looking at the real estate market snapshot for Norwalk, IA in February 2013 you can see that it has changing over the last few years to a more balanced market. The biggest changes are the number of active listings on the last day of the month (Current Listings) and the median number of days it took to sell a listing (DOM). With only 50 homes on the market, it can be a challenge to find homes for buyers. There is not much to choose from. However, this number will continue to rise as spring approaches. In our office we have already added 10 new listings in the first half of March and there is new construction happening all over town. Months of Inventory, which is the number of months it would take to sell the homes currently on the market at the current rate of accepted offers, is at 6 months. This is considered very balanced between a seller’s market and buyer’s market. 

Energy efficiency is what home buyers are looking for in 2013 according to a new study released by the National Association of Home Builders titled, “What Home Buyers Really Want.”

Of the buyers surveyed, 94% want energy-star rated appliances, 91% want the whole home to have an energy-star rating, 89% want energy-star rated windows and 88% desire ceiling fans. On the flip side, 43% do not want a two-story family room and 38% don't want a two-story foyer, viewing them as less energy efficient.

Laundry rooms are "essential", according to 57% of those surveyed and nearly every home buyer surveyed say they want one in their home.

A linen closet in the bathroom, space in the garage to put sports equipment and gardening tools, and a walk-in pantry in the kitchen also rank high on home buyers list of must haves.

Source: “What Do Home Buyers Really Want?” RISMedia (March 3, 2013)

Here at EXIT Realty North Star, our agents have seen an increase in the number of renters who are buying homes. These Des Moines, IA area buyers tell us that they are ready to stop renting and believe this is the right time to become homeowners.

The number of renters who plan to become home owners took a big leap in the past year, according to a recent survey by PulteGroup and that seems to agree with EXIT Realty North Star observations here in the Des Moines, IA market. That survey of 506 renters indicated that about 6 in 10 of them plan to purchase a home in the next 2 years. "We're definitely seeing a renewed sense of optimism," says Jacque Petroulakis, a PulteGroup spokeswoman.

The PulteGroup survey's results fit other findings in 2012 that bode well for home prices and sales in 2013, according to Jed Kolko, chief economist of listing service Trulia.

Trulia recently did a study that also showed a big increase in renters who intend to buy. Renters cited the top three reasons why they want to purchase a home:

 • 49 percent say they like being able to call themselves home owners.

• 44 percent say they view home ownership as a good financial investment.

• 36 percent say they need more space for their family and children.

Kolko attributes the reported rise in renters' interest in homebuying to an improved economy, which has helped potential buyers save for down payments, as well as to rising home prices, which have bolstered consumer confidence in the housing market.

Let one of the highly trained REALTORS® at EXIT Realty North Star “Chart Your Next Move” in or out of the Des Moines, IA area. Contact us at 515-981-5131.

Jon Niemeyer, Broker Owner, EXIT Realty North Star 1039 Sunset Dr., Norwalk, IA 50211 Jon.Niemeyer@ExitRealtyNorthStar.com   515-981-5131 www.ExitRealtyNorthStar.com

I notice that many buyers who are shopping for $175,000 or higher price homes are excited about purchasing new construction. I admit that new construction is really nice and the idea that no one has ever lived in the home before is comforting, but I would like to point out some advantages of purchasing an older home.

1.)    Mature Trees: You can’t normally get mature trees with new construction and you will likely never have a mature tree in the time you will live in that home. Mature trees bring a quality of life and can add thousands of dollars of value to a home.

2.)    Upgrades: Your new home, especially if it is a spec home, will likely have builders grade components in the home, meaning that the quality of things like flooring, lighting and fixtures are low to mid-range quality. A resale that is 15 years old or so may have a remodeled kitchen and baths, replacement windows, a fenced yard or shelving in the basement. Also, when remodeling, a homeowner will typically use higher quality materials.

3.)    More Home: An older home will usually be priced less per square foot of living area than new construction which will allow you to purchase more home.

4.)    Fewer Problems: Believe it or not, new homes have problems, too. The previous owners of a used home will have dealt with the issues that came with the house when it was new and if they haven’t, the problems will be obvious during an inspection and you can act accordingly.

5.)    Construction Traffic: If you move into a newly constructed home, you are probably moving into a neighborhood that is still under construction. You could be living in a construction zone for years until all the lots are built upon. There is a significant amount of noise, dust and traffic associated with construction zones.

Find a great community based on your lifestyle preferences. Then view all properties for sale within those communities! A lifestyle based community search helps you identify communities which may be of interest and then explore homes for sale.

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Is the dream of owning a home still alive? Some analysts will say no, but during the adult class I attend at church, couples were asked about their dreams. One husband said his dream for his family and himself was to own a home. A recently released survey by the Woodrow Wilson Center backs that statement up with their finding that the majority of Americans consider home ownership very high in importance, rating it with a mean score of 8.597 on a scale of 0 (not important at all) to 10 (extremely important). I would agree with that stance. Home ownership provides opportunities on many levels, from freedom to make individual choices to teamwork and hospitality.

The month of May saw optimistic activity in the Norwalk real estate market. According to the Des Moines Area Association of REALTORS, there are currently 58 residential homes for sale in Norwalk compared to 80 a year ago. The median list price of the homes currently listed is $231,000.

During the month of May there were 15 offers accepted compared to 13 last year and there were 14 homes that came on the market compared to 26 a year ago.

May saw 12 closed sales with a median sale price of $204,500, which was 96% of the list price, and spent 146 days on the market.