Don’t Wait for the Market to Change! Why Now is the Perfect Time to Buy Your Dream Home in Des Moines

In today's dynamic real estate landscape, making a move to purchase a home might feel overwhelming, especially with so many mixed messages about interest rates and market stability. However, buying a home right now, even with today’s financial climate, could be one of the smartest investments you can make. Why now is a prime time to take the leap into homeownership.

1. Interest Rates Are More Favorable Than They Seem

One of the biggest factors influencing buyers is, of course, the state of mortgage interest rates. While it’s true that rates have increased compared to historic lows in 2021, they are still well below the peaks seen in past decades. In the 1980s, for example, mortgage rates hovered around 18%—a stark contrast to today’s rates, which are currently averaging around between the 5-7% range for a 30-year fixed mortgage, according to data from Freddie Mac. When viewed from a historical perspective, today's rates, while higher than in the recent past, still present a favorable opportunity to lock in long-term housing costs.

2. Home Prices Are Stabilizing

Over the last couple of years, the real estate market experienced a rapid surge in home prices due to high demand and low supply. In Des Moines, median home prices rose sharply, driven by a flood of buyers looking to capitalize on ultra-low mortgage rates during the pandemic. However, with a moderating market, price growth has leveled off, giving buyers more room to negotiate and secure a home at a fair price.

According to a recent Redfin Market Data report, home prices in Des Moines have increased modestly year-over-year but are nowhere near the double-digit growth seen in 2020 and 2021. This stability means buyers are less likely to face intense bidding wars and can find homes that fit their budgets without the frenzy.

3. Growing Equity Potential

Owning a home is one of the best ways to build long-term wealth. When you rent, 100% of your payments go towards your landlord's mortgage and equity. But with a home purchase, every mortgage payment contributes to your own financial future. Homeowners can build substantial equity over time, which can be tapped into for future financial needs, used for home improvements, or simply enjoyed as an appreciating asset.

The National Association of Realtors (NAR) notes that the average homeowner’s net worth is approximately 40 times greater than that of a renter. This figure underscores the wealth-building power of real estate, even in periods of fluctuating home prices.

4. Inventory is Improving

The past two years have been characterized by an extreme shortage of available homes, leaving many buyers empty-handed after months of searching. Fortunately, the tide is turning. New listings are beginning to pick up in many areas, including Des Moines, offering buyers more choices than before. According to Realtor.com, the number of active listings has increased by 3.2% year-over-year, signaling a slight return to balance in the housing market.

This uptick in inventory means that buyers may have more leverage to negotiate on prices, seller concessions, and even closing costs—opportunities that were rare in the frenzied market of 2021.

5. Tax Benefits and Incentives

Owning a home comes with significant tax advantages that renting cannot offer. Mortgage interest deductions, property tax deductions, and potential state-specific incentives can reduce your taxable income, thereby decreasing your overall tax liability. For first-time buyers in Iowa, there are also state-specific programs, like the Iowa Finance Authority’s FirstHome program, which offers down payment assistance and competitive fixed interest rates.

6. Renting Costs Continue to Rise

Des Moines has not been immune to the trend of increasing rental rates, with the average rent in the city rising by 5.8% over the past year, according to Apartment List. If you’re currently renting, chances are you’ve felt the pinch of these rising costs. Buying a home allows you to establish a fixed housing payment, protecting you from future rent hikes and providing long-term financial stability.

A Final Thought from the dsmSOLD Team

As the Des Moines real estate market begins to stabilize, now is the perfect time to consider purchasing a home before rates climb further and inventory tightens again. At the dsmSOLD Team, we believe that homeownership is a pathway to financial stability and personal security. If you’re contemplating making a move, we’re here to guide you every step of the way, ensuring you make a decision that’s right for your financial and lifestyle goals.

Ready to explore your options? Reach out to the dsmSOLD Team today and let’s start your journey to finding the perfect home in Des Moines!