The first quarter of 2020 is behind us and this is the perfect opportunity to take a look at how the Iowa City real estate market is doing. Home Sales in this time period will give us a baseline to look back on as we navigate through what looks likely to be a challenging few months in Iowa City. 156 Homes sold in Iowa City January through March 2020 compared to 150 homes sold in the same time frame in 2019. That’s a 4% increase in homes sold in Iowa City compared to last year. That’s a good start to the year. The next few months will show us whether that holds up throughout the spring and early summer. One thing is certain, Iowa City is a transient town and come what may, there will be buyers moving here this Fall needing a place to call home. It seems highly likely that even if buyers do take a short break to assess the current situation they will still need to get back into the game before too long to find that place to call home. Not to mention, interest rates are super low. It truly is a great time to buy a house or condo!
Homes Sold in Iowa City Jan – March 2020
Contract to Listing Ratio and Absorption Rate
In addition to looking at home sales and home prices in the first quarter, the absorption rate and the contract to listing ratio both help to provide a clearer picture of how the Iowa City real estate 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 3.8 months or 116 days. Anything under 6 months is trending towards 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 37% of the homes listed on the Iowa City MLS are under contract. At this time of the year with the peak selling period already underway 37% is a little low. This may be due to some buyers taking a break from house hunting while the social distancing rules are in place. Check back next month to see whether that number is closer to the 50% that we typically see during the peak selling time of the year.
Highlights for the 1st Quarter: Real Estate Market Iowa City
- Home Sales in Iowa City are up 4% compared to last year. 156 homes sold January – March 2020 compared to 150 homes sold in the same time frame in 2019.
- The absorption rate is at 3.8 months, that’s 116 days on market and trending towards a sellers market.
- There are currently 343 homes in Iowa City showing as Active Listings on the MLS and 201 homes are currently showing as Contingent or Sale Pending – That means 37% of the homes listed in Iowa City are under contract. This needs to rise to closer to 50% in the next couple of months to be in line with previous years.
- Average Price for Single Family Homes in Iowa City is – $301,546 Average price in the 1st Quarter 2020 compared to $276,927 in 2019
- Average Price for Condos in Iowa City – $191,490 Average price in the 1st Quarter 2020 compared to $214,725 in 2019
Whether you’re buying or selling a home in the Iowa City area, 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 for this report pulled from the Iowa City MLS April 9, 2020