Home Sales are even with last year for the 3rd Quarter in Iowa City. 362 Homes sold July – September 2016 compared to 361 in the same time frame in 2015. July is typically the strongest month for closings in Iowa City and this year home sales in July were down almost 17% compared to last year. This is the biggest factor as to why we’re not seeing an increase in home sales this quarter compared to 2015. Buyer Activity has been strong throughout the year in Iowa City. It’s a pretty safe bet to say that the shortfall in July was due simply to a lack of inventory of homes on the market. Fortunately one month doesn’t make a trend and August and September both saw a good increase in home sales in Iowa City, as you can see in the chart below.
Contract to Listing Ratio + Absorption Rate Iowa City
In addition to the number of homes sold in the last 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 4.6 months or 139 days. 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 28% of the homes listed on the Iowa City MLS are under contract – The contract to listing ratio is higher than you’d expect for the fall months and a sign that we have an active fall market in Iowa City. The current market is good for both buyers and sellers. Sellers get their homes sold and buyers actually have time to think before making an offer, which is a luxury they often don’t have in the spring!
Homes Sold in Iowa City July – September 2016
Highlights of This Month’s Market Report for Iowa City
- Home Sales in Iowa City are even with last year. 362 homes sold in July – September 2016 compared to the same time frame in 2015.
- The absorption rate is at 4.6 months, that’s 139 days on market and trending towards a sellers market.
- There are currently 256 homes in Iowa City showing as Active Listings on the MLS and 98 homes are currently showing as Contingent or Sale Pending – That means 28% of the homes listed in Iowa City are under contract – There are fewer homes on the market this year and more of them are under contract. This is a sign that the fall market in Iowa City is stronger than last year.
- Average Price for homes in Iowa City down 2% – $238,934 Average price in 2016 compared to $244,446 in 2015
- Median Price for homes in Iowa City down 2% – $209,750 median price in 2016 compared to $215,000 in 2015
Regardless of market conditions, 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 21, 2016