Home prices are on the rise mostly driven by investors snatching up deals in their local market.

According to real estate analysts with the DBRS report released last week home acquisitions by investors are likely to keep pushing home prices higher. Discounts are continuing to become scarcer as confidence in the real estate market is beginning to rise.

There is a clear increase in housing demand from 2011 to 2012. The National Association of Realtors said at the end of last month that October’s pending home sales index was up 13.2% from one year ago and marked the 18th straight year-over-year gain. Des Moines has also seen a steady increase in sales of roughly 14% over 2011.

This is happening while completed foreclosures are down 17% for October

According to the Des Moines Area Association of REALTORS the Des Moines housing market is likely to end the year with the number of accepted offers up 17% over 2011. More homes are being sold and at a slightly higher price, while inventory is decreasing. This creates a more even buyer/seller market for the Des Moines metro. The average number of days on the market for the month of November was 98 days, down 7.5% from November 2011 when it was 106 days. (More on Iowa sales and prices) 

Another interesting statistic shows 55% of metro buyers used conventional financing in October while 17% used a FHS loan. The remaining 27% was split into 21% cash purchases and 6% using other financing. (More)