How is the Iowa City Real Estate Market looking as we head towards Fall? Home prices are up in Iowa City and yet home sales are down just a tad. There were plenty of buyers out and about this spring and summer, just not enough houses to go around! Below is a break down of home sales and home prices in Iowa City this year so far.
Homes Sold in Iowa City: January – August 2017
Home Sales are down 1% for the first 8 months of the year. The Average Home Price on the other hand is up 10%. 822 Homes sold January – August 2017 compared to 831 homes sold in the same time frame in 2016. Fewer homes on the market means more competition for the many buyers looking to buy a home. Prices go up when there aren’t enough houses and condos to go round, which is exactly what we’ve seen in Iowa City throughout the spring and summer months. There aren’t as many buyers out and about now as there were in spring. The market is still active as we head towards fall and the best homes are still going fast.
Home Prices in Iowa City: January – August 2017
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 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 3.4 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 25% 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 – August 2017
- Home Sales in Iowa City are down slightly compared to last year. 822 homes sold January – August 2017 compared to 831 homes sold in the same time frame in 2016.
- The absorption rate is at 3.4 months, that’s 102 days on market and definitely a sellers market.
- There are currently 301 homes in Iowa City showing as Active Listings on the MLS and 104 homes are currently showing as Contingent or Sale Pending – That means 25% of the homes listed in Iowa City are under contract.
- Average Price for Single Family Homes in Iowa City UP – $293,334 Average price in the January – August 2017 compared to $265,510 in 2016
- Average Price for Condos in Iowa City UP – $189,390 Average price January – August 2017 compared to $174,493 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 September 12, 2017