Riding the same wave of low interest rates that fueled a hot 2002, many Greater Des Moines real estate firms profited from double-digit increases in residential sales last year.

“We had an excellent year,” said Carolyn Helmlinger, president of Coldwell Banker Mid-America Group. “We were up about 26 percent over (2002). We did about 3,300 units, and almost a half a billion in sales.”

The agency, Des Moines’ second-largest, increased its sales force by 45 agents to about 220 last year, Helmlinger said. It plans to grow to 250 agents this year.

“Looking forward to ’04, I see nothing but great,” she said. “I see more increases, and we’ll see more growth.”

Residential sales in Central Iowa reflect a strong national market. Total existing-home sales rose in 47 states and the District of Columbia in the fourth quarter of 2003 compared with the same period in 2002, with an overall increase of 9.3 percent.

Housing remains a major component of economic growth, said David Lereah, chief economist for the National Association of Realtors.

“Record levels of home sales, primarily due to historically low mortgage interest rates, have been contributing significantly to economic activity,” he said in a February release. “Near-record activity this year will provide a strong foundation for other sectors to grow and create jobs, which in turn will help additional households to buy homes and sustain a strong housing market through 2005 as well.”      At the state level, Iowa recently led the Midwest in residential sales growth, with fourth quarter 2003 sales up 18.5 percent over fourth quarter 2002, according to NAR figures.

“With the rates the way they are now, people have been able to move up to a little more square footage, and that’s made it a good market in the Midwest, especially in Des Moines,” said John McRoberts, owner of American Home Sales in West Des Moines. He estimated his firm’s sales are up 50 percent, “and what’s amazing is we’re at the upper end of the market.”

McRoberts said he sees an almost even mix of new and existing home sales.

“A lot of the younger people, unless they’re from Des Moines, would just as soon have a brand new home,” he said. “People who are from Des Moines may be more comfortable going into an existing home in a neighborhood they’re familiar with.”   He’s also noticed an increasing number of professional women in the home-buying market, both single or those with children.

Two of Central Iowa’s largest agencies, sister companies Iowa Realty and First Realty GMAC, collectively increased residential sales by 15.5 percent last year, to $2.51 billion in 2003, said Jim Koolhof, executive vice president for the companies.

“I think as long as interest rates remain favorable, as we expect them to be, we expect another good year,” Koolhof said. “We don’t expect the same rate of increase we saw in 2003, but we do expect another strong year.”

RE/MAX Real Estate Group in Des Moines was up about 200 transactions in 2003, selling more than 2,100 houses, said Don Godwin, the firm’s broker-owner. The company’s volume was about $280 million, the highest in its history, he said.

The group recently bought the RE/MAX franchise for Pleasant Hill and plans to open an office this fall, Godwin said. It will initially have 10 agents.

“Because that’s such a growing area, we’re looking at 30 to 40 agents,” he said. “Because of the east bypass, it’s made a lot of those areas like Carlisle and Pleasantville very accessible. There’s a lot going on out there.”