Everyone’s talking about a “Hot” real estate market. So what does that mean? In Iowa City it means there are not enough homes available for the many buyers who want to buy this spring. We have two ways of knowing that. The first is because we see sellers fielding multiple offers on the day of listing and buyers scrambling to be one of the lucky ones who actually get to see a home before it’s gone. The second is in the data and that’s what I’m here to share with you today.
Homes Sold in Iowa City: 1st Quarter 2017
Both Home Sales and Home Prices are up for the 1st Quarter in Iowa City. 146 Homes sold January – March 2017 compared to 145 in the same time frame in 2016. It’s not the small increase in homes sold that is noteworthy. It’s more the fact that fewer homes on the market means more competition for buyers looking to buy a home. This lack of choices for buyers typically has an effect on home prices, which is exactly what we’re seeing in Iowa City right now.
Home Prices in Iowa City: 1st Quarter 2017
Contract to Listing Ratio + Absorption Rate Iowa City
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 an even 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 months or 91 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 49% of the homes listed on the Iowa City MLS are under contract. This is another good sign that there are a lot of buyers out and about writing contracts. There is absolutely no doubt that the Iowa City real estate market is rocking it this spring!
Highlights for the 1st Quarter: Real Estate Market Iowa City
- Home Sales in Iowa City are up slightly compared to last year. 146 homes sold January – March 2017 compared to the same time frame in 2016.
- The absorption rate is at 3 months, that’s 91 days on market and definitely a sellers market.
- There are currently 277 homes in Iowa City showing as Active Listings on the MLS and 261 homes are currently showing as Contingent or Sale Pending – That means 49% of the homes listed in Iowa City are under contract. So many homes under contract is another clear sign of a real estate market with a lot of buyer activity.
- Average Price for Single Family Homes in Iowa City UP – $266,242 Average price in the 1st Quarter 2017 compared to $257,358 in 2016
- Average Price for Condos in Iowa City UP – $183,491 Average price in the 1st Quarter 2017 compared to $158,754 in 2016
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 April 1, 2017