Is the Des Moines metro market overheating?

[Rene Owczarski]

I’ve been investing in Des Moines real estate for a while now, and I haven’t seen this kind of frenzied buying since 2006-2008.

Looking at the DMAAR's (Des Moines Area Association of REALTORS ) July sales report, homes sales are up 31.4% year on year.

And were still waiting on the August sales report from DMAAR in the next few days.

Because just anecdotally talking to buyers that have moved into the Des Moines metro. Homes that are priced right on the MLS are selling the same day they are listed.

What’s everyone else seeing in the market?

[Drew Leonard]

With the current list prices in the DSM area, I find it hard to believe how purchasing a $50k-65k/unit is yielding positive cash flow. I'm not a seasoned investor there just yet, but I'm looking for my second 5+ unit there (distressed/value add property) and have been a bit baffled. I was presented with a 12-unit property (at about $60k/unit) and was nearly laughed out of the room when I suggested something closer to $45k. Saw a recent MLS listing for just shy of $60k (granted, in Sherman Hill) that was advertised as needing a full interior renovation. Obviously it may not sell for quite that high, but still.