The best news in this month’s market snapshot is that there’s plenty of buyer activity in the Iowa City real estate market. 181 homes are currently contingent or pending on the Iowa City MLS. That number on its own doesn’t tell you a lot. It’s when you look at the contract to listing ratio that you see how active the Iowa City market is. According to today’s data Iowa City has a 34.2% contract to listing ratio. In other words, 34.2% of the homes currently on the market have accepted offers. (181 homes under contract / 529 homes on the market). Right now the market falls in the “active” bracket, once the contract to listing ratio rises above 40% we’ll know the market is hopping!
Surprisingly, these good stats don’t translate into home sales this month. 18 homes sold in Iowa City so far in March, compared to 38 in the same time frame in March 2013. Luckily we know there are plenty of homes waiting to close or we might wonder what’s up with that number!
348 Active Listings
181 Homes Pending or Contingent
18 homes sold in Iowa City in March to date – 12 Single Family Homes, 5 Condos, 1 Zero Lot.
While the contract to listing ratio looks at the market in “real time,” the absorption rate is another tool to gauge market conditions and looks at past sales. Calculating the absorption rate is a great way to see how the market is trending. This month the absorption rate is at 4.2 months, (123 days on market). That’s up from 3.2 months in January. The rise seasonal – The absorption rate is likely to fluctuate quite a bit in the coming months as more homes are listed. As long as the absorption rate stays between 3 – 6 months the market is in great shape offering opportunities to both buyers and sellers.
Check back for updates to see how the Iowa City real estate market continues to do as we head towards the peak selling time of the year.
Want to talk through your options and figure out whether now is a good time for you to buy a home or sell your home in Iowa City? Give me a call at 319-400-0268 or drop me an email. My approach is very straightforward. I’ll help you figure out a strategy on how to get from A to B with the minimum amount of fuss.
Data pulled from the Iowa City MLS March 22, 2014