THE FOUR SEASONS AND HOW THEY EFFECT IOWA REAL ESTATE MARKET:
People are always asking “Where is the market at?” This question is okay, if you are only curious. To make a good decision in Real Estate, you need to be thinking further down the road than right now. Much like any other market, Real Estate could change over night, and definitely by the end of the week.
To paint some context in how to answer this question, at least in Iowa/Midwest U.S., we need to understand how the whole year effects our communities.
The go-getters of our community are the one’s thinking ahead, do not worry not everyone is a go-getter we know. That being said, when thinking about buying or selling a home, it is good to think 2-3 months ahead of the actual time period you want to move. At minimum, acquiring your next destination could take anywhere from 35-45 days. That is why we throw the month of February in the mix of Spring months. Spring Market is a climb, much like other industries, the Holidays are over and people are “waking” up after a cold winter and feel the need to start working on their year goals. The further your time-line start heads into the months of April/May, the more you are looking at the Summer crowd.
Everyone loves summer. Curb Appeal, Open Houses, and The High Energy summer brings is where the housing market peaks. Home builders are on 40 hours a week and people have more free-time. In 2022, nothing is for certain on when today’s market will plateau. With the interest rates still historically low, we do not see a yield to demand. Something is to be said about the summer months and peoples optimism to move. This would indicate a possible increase in inventory and send us into the beginning of a balancing market. Another thing to consider is the production of developers. Right now, the market is sitting around 375 resale listing and 1300 new construction projects.
The Iowa State Fair. Kicking off our fall market is one of Iowa’s most glorified holidays. The community’s focus is directed to the fairgrounds off of E 33rd Street. What does this mean? Well, if you are listing a home during this 10 days you can expect that there will a lot less activity on your home. If you are buying, then you are one of the few that are not busy during this time and our office would be glad to help you achieve YOUR goals as seamless as possible! The following Monday the market is back. The plateau continues through the school season and into October. In 2022, we expect this time period to still be in the plateau of the current market.
Where does the community’s minds go when we hit November? The Holidays. As far a listings go, people are thinking of being home and hunkering down for the month of December. This effects inventory which then effects supply/demand making it a more competitive market for buyers. That being said, if buyer demand also recedes then the market as a whole will remain balanced. In Winter 2022, it is hard to predict where the market will be. The interest rates are expected to remain steady, it is more of a question of where inventory will be positioned by the end of the year.