Following up on last week’s snapshot today I’m taking a closer look at home sales and home prices in Iowa City in January. 16 homes sold in Iowa City in January 2013 compared to 33 in January 2012. It’s a bit of a surprise to see such drop over last year, but considering the large number of homes under contract that will close in the coming months this can’t be more than a glitch. There are 54 single family homes, 17 condos and 2 zero lots currently either contingent or pending on the Iowa MLS – 73 homes in total. That’s a good high number of closings to look forward to in the next couple of months!
The charts below show you exactly how the numbers break down The first chart compares home sales to the same period last year. The second chart shows the trend for the last three months. You’ll notice right away that single family home sales far exceed condo sales in Iowa City. The good news is that as I mentioned in the last paragraph, there are currently 17 condos under contract. A sure sign that condo sales will be picking up in the next few months!
The absorption rate for single family homes in Iowa City is 3.8 months, that’s an average of 116 days on market. For condos it’s 4.5 months, 136 days on market. Less than 6 months is considered a sellers market. That may be a little optimistic when you consider that as soon as the weather breaks and the first tulips show their heads there will be real estate signs popping up all over Iowa City. The absorption rate takes the number of active listings into the equation and at the moment the inventory of homes on the market is low. When the inventory goes up, so will the absorption rate. When you look at it that way it looks much more like a balanced market than a sellers market. What it doesn’t look like is a buyer’s market!
Want to talk through your options and figure out whether now is a good time for you to buy a home or list your home in Iowa City? Give me a call at 319-400-0268 or drop me an email. My approach is very straightforward. I understand the ins and outs of the Iowa City real estate market and will help you figure out a strategy on how to get from A to B with the minimum amount of fuss.
Data for this market report pulled from the Iowa City MLS February 5, 2013