You never know with real estate.
This past year might have favored your Iowa housing needs. Don’t get too comfortable, though.
Property and the housing market, in general, are unpredictable places. There’s always the risk that it could all collapse in on itself.
Let’s take a look at the Iowa housing market and what the experts think will happen to it in the next year or two.
Iowa Real Estate Market
Iowa, like any other real estate market, is unpredictable and can easily fluctuate on a monthly, weekly or even daily basis.
KWWL explains that Iowa has been affected by the short supply of affordable homes available on the housing market. While they believe that as supply increases over the year the average price of property will begin to ease, the total supply overall will still be short of what is needed.
Home growth rates sat at 6 percent in 2017. However, this number is set to decrease should expert predictions come true. It’s looking like they’ll be an increase of 4 percent for home growth prices in 2018.
While this is a definitive decrease, it’s still much higher than the average growth rate of 3 percent. So while it doesn’t seem to be as positive as 2017’s home growth rates, it’s still a better-than-average prediction.
The increase in interest rates about the Iowa housing market is a prediction that isn’t new. Every year from 2010, this prediction seems to find a place with experts. However, it’s looking like it might just come true for 2018.
The market is looking like it will slowly move away from the imbalance in housing supply. However, this could still take a while to correct itself.
What to Expect in the Iowa Housing Market
KWWL continues by saying that entry-level homes are increasing in popularity. This is due to a lack of inventory in housing and an increase in the millennial generation entering the property market.
This demographic of buyers is predicted to be targeted by property developers. A bid to increase the general home growth rate while adding to the housing supply in general.
While there isn’t a guarantee that housing supply will meet demand this coming year, it’s looking like prices could very well stabilize. Meaning good things for the groups of buyers newest to the market.
The tax bill that is often closely associated with the Iowa housing market is set to increase across all areas. This could put a spike in costs and prices overall.
While tax increases typically affect the middle and upper classes, this particular prediction, if accurate, will transcend into the first home buyers as well.
Speaking of first home buyers, there are predictions regarding geographical placement. It is believed that millennials and other first home buyers will be pushed further out into the suburbs. In here affordable housing can be built by developers keen to capitalize on these predictions.
What You Should Know About Iowa Real Estate
Than Merrill of Fortune Builders believes that in Des Moines you will find a house price stall and a slight decrease in the Iowa housing market.
He believes that this is a sign that house prices have begun to slow down. However, this hasn’t stopped homeowners regaining a lot of their equity simultaneously. This equity is promising and predicts a positive future in the housing market, despite the current decrease in home value.
While not comparable to other major cities like Seattle, Des Moines has a relatively strong economy. It strong market fundamentals stand it in good stead and help to keep the market predictions positive.
Because Des Moines is a good place to start a business, it has seen an influx of people. People with existing assets swoop in with property in mind. Another factor in this equation is that Des Moines offers a level of housing affordability that can’t be found in other parts of America.
Overall, the Des Moines housing market in Iowa, while not doing as well as other parts of the country, is fine at its own pace. When considering various factors, it is a stable housing market that can account for reasonably safe predictions about the coming year.
Buying Iowa Real Estate
While you can’t rely on housing market predictions to come true, you can bank on there being constant changes to the system.
This is why it’s good to be prepared, and have a positive outlook. While optimistic predictions can fall short, the same can be said for the opposite, too.
It’s not all doom and gloom about the Iowa housing market. While not all the experts will be right with their predictions, there will be some pleasant surprises to look forward to. You just won’t be able to know what they are, yet.