Many people wonder what kind of market we are in. It’s a question I hear a lot. How’s the market, how are things doing, what’s going on? These types of questions are very typical of people that know the market has changed and are interested in buying.

So how is the downtown Des Moines market? In my estimation (not a professional one by the way), downtown Des Moines is a buyers market. If it’s not it should be. Here’s why.

Currently there are over 350 units on the MLS in downtown proper. That means that right now there are over 350 units for sale, on the market right now. I’ve been told that this number is probably low, as some projects won’t list all of their units at the same time. But it’s the number we have to run with.

In September of 07 there were 3 sales downtown. That’s right, a total of 3. That can hardly come as good news to people that love downtown, or to people that have invested millions in their projects downtown.

So what do these numbers mean?

There is more than 10 years worth of inventory on the market right now. Meaning, if we kept selling at the current pace it would take more than 10 years to sell off just what is on the market right now. That wouldn’t include adding any units to the market at all!

2006 saw 83 units sell downtown, with 46 of those going to Mulberry Lofts. From what I’ve heard we’re not on that same pace for 2007.

Those are just the raw numbers. If you look around you can see that Whiteline still has 40 units for sale according to their list agent, Brownstones on Grand dropped prices between $80,000-$95,000 to make sales, and nobody has seen the large sales numbers that were seen in 06 by Mulberry Lofts. (It should be noted that Mulberry is still not full, and has not sold much of anything in 07).

Most properties downtown are not selling the way people had hoped. The rental market is red hot–so people want to live downtown, there is no question.

If you’re in the market right now it’s a great time. The numbers are showing a buyers market. Think about it, if you make an offer that isn’t “full price” or maybe you ask for some “upgrades” do you think a developer that is starving for sales is going to tell you to take a hike because they’re burdened with too many offers right now? Do you think that people are waiting in line for a chance to buy at “pre-construction discounts” like the idiots in Phoenix, Las Vegas and Miami used to?

The market has changed, and if you’re a buyer that is a very good thing. If you are smart, and patient about it–you may just end up with exactly what you want at a better deal than you expected.

Of course, this is just a blog, and I’m not a real estate professional, so take my opinion for what it’s worth.

If you are looking at buying downtown, or would like to learn more be sure to get in touch with Brett Fine, Your Downtown Realtor, he’s our expert here to help you! He can be reached at 515-314-8673. Or if you need help financing, or with finance questions get in touch with Benjamin Morrow, he’s also here to help you. He can be reached at 515-409-3221.