Norwalk Real Estate Market Heating Up
The last 30 days have been a busy time for the real estate market in Norwalk, IA. According to the Des Moines Area Association of REALTORS, at the time of this writing 2/23/2012 there are currently only 69 residential homes for sale in Norwalk compared to 89 a year ago. There were 15 offers accepted in the last 30 days, up from 8 last year. At this rate it would take only 4.6 months to sell all the inventory of homes in Norwalk. Last year at this time we had 10 months of inventory. This would be considered to be on the Sellers Market side of a Balanced Market. In the last 30 days there were 9 transactions that closed with an average sale price of $120,452, which is very telling of the market price range that is selling. Homes priced less than $150,000 are the lion’s share of the market right now. Those homes sold at 99% of the List Price and were on the market about 104 days. In the last 30 days there were 24 homes added to the market with a median list price of $150,000.
I suspect that we will see a record number of homes come on the market in the next few of months. There are many homes that were on the market in the past, but didn’t sell and were pulled from the market to wait for a better time. I believe we will see those homes, plus many more foreclosed homes come on the market this spring. I also suspect that there are many buyers that have been waiting for the bottom of the market and this will show up as pent up demand. This year could be very active for real estate.
As I have mentioned in past articles, investors are seeing real estate as a good place to put their money. That is the reason so many homes under $150,000 are selling right now. Rents are rising across the country and that helps those rental properties cash flow. NAR research show rent prices have been rising at a progressively stronger rate in recent years and projects they will rise another 3.5 percent in 2012. Vacancy rates have been trending down gradually and currently rest at 5 percent and that percentage is expected to fall even further in 2012 as demands for rent increase. Historically, 5 percent is seen as a “landlord’s market.”
If you are interested in receiving local real estate statistics from me on a regular basis just send me a request at Jon.Niemeyer@ExitRealtyNorthStar.com. We also provide property management services.
Information provided by Jon Niemeyer, Broker/Owner, EXIT Realty North Star, 1039 Sunset Drive, Norwalk, IA 50211, 515-981-5131.