June and July are typically the strongest months of the year for closings in Iowa City. Real estate is seasonal and the most closings are in summer. There’s nothing surprising about that statement. What is surprising is that although 167 homes sold this month in Iowa City – more homes than any other month this year – home sales are down 19% this month compared to July 2015. 167 Homes sold in Iowa City in July 2016, compared to 206 homes sold in July 2015. I’m sure the number of homes sold in July will increase next week when more agents update their sold listings for July on the MLS. It seems like a tall order to expect to match last year’s number though!
Considering how strong the Iowa City market started the year, it’s surprising to see home sales down in both June and July. Earlier in the year buyers were having a hard time finding homes to buy with an acute lack of inventory of homes on the market. In the meantime the spring rush is over, many of those buyers who failed to find the right home in time had to find other solutions. On the up side, home sales are still up 2% for the year. (Confirming what we already knew – It was a hot spring for the Iowa City real estate market!) We’ll know more in in a few months what the impact of the summer shortfall will have on home sales for the year.
Homes Sold in Iowa City
July 30, 2016 Compared to July 2015
Home Sales are down for all styles of homes in Iowa City. The table above shows quite a drop in sales for single family homes, condos and zero lots. (These are preliminary numbers. There will probably be an uptick of the numbers for July 2016 next week when more agents update their sold listings for this month).
Contract to Listing Ratio
Iowa City July 30, 2016
The contract to listing ratio is a good way of looking at the market in “real time” and to gauge closings scheduled for the coming weeks and months. 34% of homes currently listed on the Iowa City MLS are contingent or sale pending. Thats down from 47% last month and shows that there aren’t as many buyers out writing contracts. There’s nothing surprising about that statement either. It’s vacation time. It’s not at all unusual to see less buyer activity once the end of July and August roll around.
Number of Homes Sold / Days on Market
Iowa City July 30, 2016
The brightest spot in this month’s market snapshot for Iowa City is that homes are selling pretty quickly. Just 32 of the 167 homes sold in July took longer than 90 days to sell. In fact more than 60% of homes sold in less than 60 days. A low market time is good for the market and helpful for sellers. The longer a house is on the market, the more chance there is that it will affect the price.
What’s the takeaway for buyers and sellers in Iowa City from this market snapshot? The real estate market is not as active in Iowa City as it was earlier in the year. Competition is not as strong for buyers with the peak buying season winding down. Nonetheless, the best homes will go fast in a market that is still low on inventory and buyers need to be on top of their game not to miss out. (This is especially true in the lower price ranges). Often times buyers wait till they find a home before contacting a Realtor. They don’t realize that hiring a (good) Buyer’s Agent may help them into their new place quicker. In fact in a real estate market short on inventory a (good) agent is a real asset when it comes to making sure buyers don’t miss out on any “hot” listings when they hit the market.
When you’re ready to work with an agent completely committed to making sure you get exactly what you want out of your buying or selling experience, Call Denise at 319-400-0268. You really can’t put a price on piece of mind!
Data provided via the Iowa City MLS July 30, 2016