The Burlington real estate market has a problem: Not enough people are selling homes.
The lack of homes on the market, combined with the constant desire to buy homes, has created an environment that highly favors sellers.
“The number of offers on the new listings, the short time from listing to actually closing, I mean you see some pretty fast things happening,” said John Salvador, principal broker at Century 21’s Burlington office. Shortage.”
Burlington’s inventory of available homes on the market typically hovers around 200, but in recent months that number has been closer to 65, driving up asking prices and, in turn, higher bids from potential sellers.
Despite less availability, this year’s home sales are not far from what they were last year. In the first five months of 2021, 248 homes were sold. That number fell slightly to 242 during the same five-month period this year. The median home price has increased by more than $25,000 during that period.
Andy Kroner, a realtor with Remax Real Estate, said 65 homes might seem like a lot until you think about the types of homes someone might want to buy.
As of Thursday, for example, there were only eight three-bedroom homes with a two-car garage in Des Moines County listed for between $150,000 and $200,000 on the market.
Kroner said the imbalance of homes for sale and potential buyers can create a cycle when there aren’t enough homes. Of late, homes don’t stay on the market for long, with many selling out in just a few days, and new listings sometimes selling out before they even appear online. Sellers may be more than willing to leave their homes, but they must have a place to go before their homes are put on the market.
This shortage of housing stock has caused a significant change in the dynamics of buyers and sellers. Buyers are the ones who need to be bolder to get the homes they want, while sellers have more options.
What homebuyers can do to prepare for a quick bid
When searching for a home, Crowner suggested homebuyers get pre-approved for a loan and apply for government grants, if they qualify, to help with the down payment, so they’re ready to go when they start looking for a home.
The Iowa Finance Authority provides down payment assistance to Iowa citizens who meet certain income requirements for homes purchased in a specified price range.
Once they found their dream home, Salvador said, he was encouraging buyers to be bolder in their offerings. Salvador said he’s seen more offers near or sometimes more than the listing price over the past year.
Tips for sellers
For those looking to sell their home and buy a new one, Crowner recommends that potential sellers meet and meet with real estate agents. Salvador spent time talking with his sellers to make sure they were getting the best possible price.
“At the same time, don’t be crazy,” Salvador warned.
Once the seller put the offers on the table, Salvador encouraged him to think carefully about his offers before deciding whether to accept them.
Another key to potential sellers is to remember that buyers are looking for homes everywhere.
Crowner said that up to 90% of homebuyers look online first, with about 50% having seen the home they would eventually buy online before seeing it in person.
While online listing sites are popular places to display photos of homes for sale, Crowner said it’s important that sellers not discount the value of social media sites like Facebook and TikTok. He said 3D videos and how-tos can also be helpful in selling a home.
“Consumers use their phones all day every day, and your home should be on the apps they use,” he said.
Earlier this week, the federal government announced that it would raise interest rates by 0.75%, the highest increase in more than a decade. Salvador said he is not concerned about how this will affect the housing market in southeastern Iowa.
“It’s still a good time to buy a first home,” Kroner said.