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Matt Grohe CRS, GRI, ABR

RESPA Luncheon at Des Moines' Latin King Restaurant Higlighted Changes and Real Estate Issues

There was more than just superb Italian food on the menu today Friday November 20th 2009 at Des Moines' Tursi's Latin King restaurant, also served up were heapin helpings of Real Estate Settlement and Procedure changes and hot button issues for real estate agents in Des Moines.

Today's lunch was graciously hosted by Steve SchraderBachar of Wells Fargo Ankeny and Wells Fargo western Iowa division supervisor Larry Geddell. If you don't know Steve you're missing out. Steve is a highly competent mortgage originator who speaks in plain language, works quickly and efficiently, goes to where the client needs him, answers his phone at all hours and times, and gives big hugs (if you want one). Steve can be reached at 515-360-5197.

While we waited for lallygaggers to assemble, agents were abuzz with these topics:

1.) Late HUDs. "Can we get them more than 4 hours before close, pretty please, with sugar on top?"

2.) Smart phones. Absolutely indispensable. Droid had folks intrigued. AT&T might not have the best coverage. Blackberry Storm was panned.

3.) Thin inventory. After the first time buyer frenzy "There's a lot of junk out there."

4.) Underwriting. "Man those people are really trying our patience!"

5.) Appraisals. New rules have the closing process hog tied. It would be better "if we could communicate more freely."

6.) Unemployment. Buyers are holding back "because they want to make sure they still have a job next year."

7.) Tax credit. "Those move up buyers are out there poking around, but they sure are picky!"

8.) Social media. Old school agents are slow to embrace and realize its value but they "Know we need to use it though without coming off like an Encyclopedia Britannica or siding sales person."

RESPA changes looming:

1.) New GFE or Good Faith Estimates required on applications taken after January 1st, 2010, complete with"tolerance levels" for services associated with obtaining the mortgage.

2.) NEW RESPA reform HUD-1 (4 pages) must closely align with initial GFE.

3.) Comparison chart. Side by side visual will compare final loan terms with GFE.

4.) Revised GFE will need to be provided to a buyer a minimum of 1 business day prior to closing for the buyer to review. If APR increases greater than .125% TIL or Truth in Lending disclosure must be revised a minimum of 7 business days prior to closing.

The lunch was grand, the company grander and the knowledge a good side dish. Nothing like getting together for a leisurely free lunch with colleagues while expanding our horizons. Thanks Larry and Steve!

Des Moines October 2009 home sales up 38% from 2008

Recent Des Moines area MLS sales stats confirmed what many of us already knew, October 2009 was a great month for real estate sales. According to the data, unit sales rose 37.6% from the prior year and days on market fell slightly, however in a good with the bad scenario home prices were also down from the prior year, albeit only a modest 3.6%. Although prices in Johnston fell -14.7% and Clive fell the hardest at -23.4%. Waukee and West Des Moines also posted double digit declines at -16.6% and -11.6% respectively.

Prices in the western suburbs have fallen harder than the metro as a whole due to large numbers of new construction homes priced $250,000 and higher which have not participated in the rally in first time home buyer sales driven by a feared expiration of the First Time Home Buyers Tax Credit.

According to a Des Moines Register article on the subject by Donnelle Eller published November 11th, Des Moines had about 1000 new homes on the market, down 38% from a year ago and down 62% from a high of appx. 2,600 in 2006. Inventory also declined about 8% to 5,409 units according to the article.

With the renewal of the First Time Home buyer tax credit and the extension to homeowners who have been in their homes 5 years or more, we may well experience significantly higher sales this winter than in the several years prior. Traditionally the Iowa real estate market is very sluggish in the winter due to low temperatures, inclement weather and thin inventory. Agents this year however may be encouraging sellers to list their homes through the slow season in light of the tax credit extension and low inventory numbers of first time home buyer homes.

City 10/2009
Total Sold
10/2008
Total Sold
Total Sold
% Change
2009
YTD Sold
2008
YTD Sold
YTD Sold
% Change
ALTOONA 18 14 +28.6% 184 196 -6.1%
ANKENY 109 81 +34.6% 889 860 +3.4%
CLIVE 13 13 0% 177 190 -6.8%
DES MOINES 309 200 +54.5% 2,242 2,235 +0.3%
INDIANOLA 20 11 +81.8% 159 167 -4.8%
JOHNSTON 38 30 +26.7% 289 264 +9.5%
PLEASANT HILL 15 7 +114.3% 83 134 -38.1%
URBANDALE 46 47 -2.1% 477 534 -10.7%
WAUKEE 38 22 +72.7% 280 266 +5.3%
WEST DES MOINES 111 63 +76.2% 771 723 +6.6%
TOTAL - DMAAR MLS (all cities) 904 657 +37.6% 7,086 7,142 -0.8%

City 10/2009
Avg Sale Price
10/2008
Avg Sale Price
Avg Sale Price
% Change
10/2009
Median Sale Price
10/2008
Median Sale Price
Median Sale Price
% Change
ALTOONA 199,619 196,464 +1.6% 183,950 184,650 -0.4%
ANKENY 187,196 190,162 -1.6% 172,500 174,800 -1.3%
CLIVE 215,416 281,369 -23.4% 185,000 284,900 -35.1%
DES MOINES 118,430 108,184 +9.5% 111,500 100,000 +11.5%
INDIANOLA 136,142 150,090 -9.3% 126,750 137,500 -7.8%
JOHNSTON 203,271 238,345 -14.7% 170,840 211,450 -19.2%
PLEASANT HILL 156,477 134,957 +15.9% 157,900 135,000 +17.0%
URBANDALE 209,993 231,230 -9.2% 171,250 207,900 -17.6%
WAUKEE 207,080 248,266 -16.6% 199,390 226,750 -12.1%
WEST DES MOINES 179,357 202,966 -11.6% 165,300 173,000 -4.5%
TOTAL - DMAAR MLS (all cities) 157,173 163,105 -3.6% 139,900 148,000 -5.5%

City 10/2009
Days on Market
10/2008
Days on Market
Days on Market
% Change
ALTOONA 82.6 123.5 -33.1%
ANKENY 110.2 118.8 -7.2%
CLIVE 99.9 55.2 +81.0%
DES MOINES 86.6 85.8 +0.9%
INDIANOLA 67.1 183.8 -63.5%
JOHNSTON 79.6 187.2 -57.5%
PLEASANT HILL 105.1 125.4 -16.2%
URBANDALE 120.5 95.4 +26.3%
WAUKEE 75.2 119.4 -37.0%
WEST DES MOINES 87.8 80.2 +9.5%
TOTAL - DMAAR MLS (all cities) 101.0 104.0 -2.9%

Data courtesy of The Des Moines Area Assocaition of Realtors.

Des Moines September 2009 home sales show tax credit bump

Des Moines September's home sales rose to from the year earlier due in large part to the home buyer tax credit set to expire on November 30th 2009.

I noticed a lot of activity related to first time buyers both on the buying and listing sides. My feeling is that hesitant buyers who had been waiting all year finally got spooked that the tax credit would not be extended or changed substantially and so went on a buying spree.

Our association president was quoted in an October 13th Des Moines Register article as saying" "I believe there are a lot of first-time home buyers out there trying to get their deal done before the deadline for the $8,000 tax credit," said Kurt Schade, president of the Des Moines Area Association of Realtors.

Some highlights from September:

  • 475 sales, or 52% of the total unit sales were for homes priced $100,000 to $200,000
  • Less than 40 homes were sold last for more than $300,000.
  • Unit sales increased to 913, from 772 the year prior.
  • Average sales prices fell to $151,589 from $167,366 the year prior.
  • Days on market increased to 100 from 96 the year prior.

9/2009
Total Sold
9/2008
Total Sold
Total Sold
% Change
2009
YTD Sold
2008
YTD Sold
YTD Sold
% Change
ALTOONA 20 26 -23.1% 166 182 -8.8%
ANKENY 120 80 +50.0% 779 779 0%
CLIVE 20 21 -4.8% 163 177 -7.9%
DES MOINES 302 264 +14.4% 1,930 2,035 -5.2%
INDIANOLA 20 14 +42.9% 139 156 -10.9%
JOHNSTON 35 26 +34.6% 251 234 +7.3%
PLEASANT HILL 13 12 +8.3% 68 127 -46.5%
URBANDALE 52 53 -1.9% 431 487 -11.5%
WAUKEE 41 26 +57.7% 242 244 -0.8%
WEST DES MOINES 102 82 +24.4% 658 660 -0.3%
TOTAL - DMAAR MLS (all cities) 913 772 +18.3% 6,172 6,485 -4.8%

9/2009
Avg Sale Price
9/2008
Avg Sale Price
Avg Sale Price
% Change
9/2009
Median Sale Price
9/2008
Median Sale Price
Median Sale Price
% Change
ALTOONA 163,799 174,532 -6.1% 156,000 174,500 -10.6%
ANKENY 183,241 211,773 -13.5% 173,750 175,625 -1.1%
CLIVE 185,765 280,517 -33.8% 166,750 251,500 -33.7%
DES MOINES 112,174 125,199 -10.4% 110,950 111,250 -0.3%
INDIANOLA 172,589 155,049 +11.3% 158,450 156,995 +0.9%
JOHNSTON 201,128 233,515 -13.9% 186,150 190,000 -2.0%
PLEASANT HILL 183,566 180,960 +1.4% 180,900 152,200 +18.9%
URBANDALE 192,701 203,901 -5.5% 185,282 192,000 -3.5%
WAUKEE 194,728 199,216 -2.3% 179,900 183,250 -1.8%
WEST DES MOINES 192,482 200,596 -4.0% 182,975 172,250 +6.2%
TOTAL - DMAAR MLS (all cities) 151,589 167,366 -9.4% 147,000 147,250 -0.2%

9/2009
Days on Market
9/2008
Days on Market
ALTOONA 99.6 107.2 -7.1%
ANKENY 97.0 103.8 -6.6%
CLIVE 125.6 122.2 +2.8%
DES MOINES 84.7 81.5 +3.9%
INDIANOLA 148.1 164.1 -9.8%
JOHNSTON 88.2 137.8 -36.0%
PLEASANT HILL 80.3 59.8 +34.3%
URBANDALE 104.9 107.8 -2.7%
WAUKEE 122.4 125.9 -2.8%
WEST DES MOINES 108.5 80.0 +35.6%
TOTAL - DMAAR MLS (all cities) 100.0 96.0 +4.2%

Data courtesy of the Des Moines Area Association of Realtors

2009 NAMI Walk this Saturday, October 3rd at Des Moines' Water Works Park

This year, 2009, will mark the third year I've had the honor to volunteer to assist in the NAMI Walk sponsored by the National Alliance for the Mentally Ill Iowa Chapter. If you're unfamiliar with NAMI Iowa here's their mission from their website:

"NAMI IOWA is a non-profit, state-wide grass roots organization. Our mission is to raise public awareness and concern about mental illness, to foster research, to improve treatment and to upgrade the system of care for the people of Iowa. We work to support our mission through education, advocacy and support."

Many people are affected by and struggle with mental illness on a daily basis. Just in the Des Moines area this year there have been at least four incidents where police have been called to apprehend a mentally ill person and the individual has been shot and killed or accidentally maimed or injured. But aside from the high profile cases, many with mental illness are unable to stay employed, care for themselves, or become productive members of society. It is estimated that one if four families contains a memebr who suffers from a serious mental illness.

You can find this years walk in Des Moines' Water Works park by taking Park Ave south to Valley Dr. and by entering the south exit appx. 1 mile off Park, across from the Racoon Valley soccer fields. You will then go left appx. 1 mile more. The way should be clearly marked.

This year's 2009 NAMI Walk IOWA is sponsored by The Des Moines Radio Group and Polk County. All donations benefit NAMI and NAMI Iowa. The walk begins Saturday, October 3rd, 2009 - 8:00 AM Registration Starts, 9:00 AM Opening Ceremony, 9:30 AM Walk Begins, Vendor booths open and activities continue until 11:00 AM.

You can register yourself or a team by clicking on this link,2009 NAMI Walk IOWA , or by just showing up! Last year the walk was able to raise $109,000 from just the Des Moines walk alone. If you have the time and are able we'd love to see you there on Saturday!

Iowa Association of Realtors Unveils New Housing Stats System

Maybe we're behind the curve, or perhaps we're out in front, my suspicion is though that all agents in Iowa will enjoy the new housing stats system unveiled by the IAR in September 2009.

We've always been able to produce reports, but data such as unit sales per month, comparisons to previous years and housing price trends have not been readily available. That's all changed now with the new report system as evidenced by this August 2009 Housing Stats Report. I, like many agents I suspect, was relegated to wait until reading the numbers in the Des Moines Register the day after the figures came from the board. This new system however means I can log-in and easily get the numbers in an easy to read format that I quickly can share with clients and prospects.

Trends are valuable in that listing agents and clients don't have to just guess about what's happening in the area or market, they can have ready access to the data to readily gauge:

  1. How aggressive to be on pricing
  2. Ascertain number of competing listing
  3. Determine whether prices are rising or falling
  4. Determine whether days on market are rising or falling

Buyers can also benefit by using the stats to determine:

  1. Price trends up or down
  2. Declining or accelerating inventory of homes
  3. Wheter or not homes on market are within normal ranges
  4. Motivations of sellers

If you're looking to buy or sell and would like to analyze the trends to determine your best strategy, give me a call and we'll set up an appointment.