It’s been a busy year for the Iowa City real estate market. As Fall nips at our heels I want to dive back in and look at home sales and home prices for the year so far. The housing market in Iowa City is not prone to big fluctuations and this year is no exception. Home prices are up in Iowa City and home sales are up just a tad too. There were plenty of buyers out and about this spring and summer, just not enough houses to go around. (At least not in the most popular price ranges). Ultimately Fall 2018 is looking a lot like Fall 2017 for home sales and home prices in Iowa City. Below is a break down of the year so far.
Homes Sold in Iowa City: January – September 2018
There is a very small increase in the number of homes sold in Iowa City in the first 9 months of the year. 883 Homes sold January – September 2018 compared to 881 homes sold in the same time frame in 2017. The bar chart below shows that although the overall number of homes sold is up, condo sales are actually down for the year. Competition was high for buyers looking for houses and condos in Iowa City this year and prices go up when there aren’t enough houses and condos to go round. This was especially true for condos in Iowa City this year and that had an impact on condo prices. Condos are the reason that overall home prices are up 4% for the year.
Chart: Home Sales in Iowa City: January – September 2018
Contract to Listing Ratio + Absorption Rate Iowa City
In addition to looking at home sales and home prices, the absorption rate and the contract to listing ratio both help to provide a clearer picture of how the Iowa City housing market is trending. The absorption rate provides information on the turnover rate of homes in Iowa City. That calculation looks at sold listings and how long they took to sell. The average time on market in Iowa City is 3.4 months or 102 days. Anything under 6 months is trending towards a sellers market. At 3 months it’s definitely a sellers market.
The contract to listing ratio looks at what is happening in “real time” and how many buyers are writing contracts. This calculation looks at homes contingent or pending that are waiting to close. Currently 21% of the homes listed on the Iowa City MLS are under contract. This is lower than in the peak selling period when the contract to listing ratio is closer to 50% or even higher. This is to be expected since we already know at this time of year there are fewer buyers out writing contracts than in spring.
Highlights: Market Trends Iowa City January – September 2018
- Home Sales in Iowa City are up slightly compared to last year. 883 homes sold January – September 2018 compared to 881 homes sold in the same time frame in 2017.
- The absorption rate is at 3.4 months, that’s 103 days on market and definitely a sellers market.
- There are currently 312 homes in Iowa City showing as Active Listings on the MLS and 84 homes are currently showing as Contingent or Sale Pending – That means 21% of the homes listed on the Iowa City MLS are under contract.
- Average Price for Single Family Homes in Iowa City – $293,770 Average price in the January – September 2018 compared to $294,181 in 2017
- Average Price for Condos in Iowa City – $228,749 January – September 2018 compared to $192,496 in 2017
The data in this Fall Real Estate Market Report confirm what we already knew and that is that the Iowa City housing market is doing just fine. What stands out is that although condo sales were down, prices were up. That shows a lot of strength in the condo market and that’s a great sign for the overall market. The luxury condominium market is on the rise in Iowa City and that’s definitely something I want to talk about in a future blog post on the site.
It’s worth keeping in mind that even in a sellers market homes don’t sell themselves, sellers will always benefit from the expertise of a good Realtor. Knowing what to expect of the market for your specific home in your specific neighborhood is key to your success.
Whatever your real estate goals are, when you’re ready to work with an agent who has a reputation for doing what it takes to make yours a smooth and stress free buying or selling experience, you can reach Denise directly at 319-400-0268, or of course email works too!
Data provided via the Iowa City MLS October 9, 2018