(Des Moines, IA) -- High-priced real estate in the Des Moines metro is continuing to hold its value, despite economic pressure over the past several months. Interest rates can play a part, but not always, according to a Des Moines area realtor.
"The lower the interest rate, the more people are interested in buying homes, and the more they can pay for a home," said Rick Wanamaker, with Iowa Realty.
Real estate in general has been staying on the market for a longer period of time. Wanamaker says it is because the market is returning to normal after the 2020-21 surge in home sales and values. However, he says the Federal Reserve cutting interest rates, which is widely expected over the next several weeks, can sometimes have a chilling effect on sales.
"When people hear in the news that interest rates are going to go lower in the future, some of them decide to wait to buy when the interest rates are lower," Wanamaker said, and that can delay people from buying for several months.
He says exclusive areas such as South of Grand in Des Moines and Glen Oaks in West Des Moines are still very desirable and will continue to be so. In addition, new areas of development are offering residents an exclusive place to live. Wanamaker says West Des Moines' new development "The Preserve" is reminiscent of South of Grand, both in style, and economic environment.
"They were both built during good economic times. The 1920s were great economic times, and now, we're actually in good economic times, despite what people think," Wanamaker said. "There's a lot of good jobs in the Des Moines area for instance, and people are celebrating by buying bigger houses."
The Federal Reserve is expected to cut interest rates by around a quarter-percentage point at its meeting today (Thursday).