How is the Iowa City real estate market shaping up this spring? The end of the 1st quarter is always a good time to take stock of the market and figure that out. 104 homes sold in Iowa City January through March 2014 compared to 107 in the first three months of 2013. The number of homes sold in the first quarter is very much in line with the data I shared last year comparing the first quarter in 2013 with 2012 and oddly enough I have the same thing to say about it this year too – The number of homes sold does not reflect what’s happening “on the ground” in the Iowa City real estate market. In fact we have a “problem” this year that we haven’t had in quite a while – We have more buyers ready to buy homes than we do sellers ready to sell their homes!
In Realtor terms we talk about a “lack of inventory” when there aren’t enough of homes on the market for buyers and that’s the situation we’re in at the moment. This obviously means it’s a good market for sellers as the high demand will definitely have its effect on pricing, as you can see is already the case in the chart below. Home sales were down in February and March, (probably due to the lack of inventory), at the same time, home prices are on the rise.
Home Sales & Median Price Iowa City
January – March 2014
With lots of buyer activity in Iowa City the number of homes sale pending or contingent are rising daily. Altogether there are 243 homes currently either contingent or pending on the Iowa MLS. (That includes 149 single family homes and 79 condos). In last year’s quarterly update there were 216 homes contingent or pending. That just goes to show you that the market is VERY active – Despite the fact that spring hasn’t done us any favors with the weather this year.
The absorption rate for single family homes in Iowa City is 4.2 months, that’s an average of 127 days on market. The days on market varies a lot in the current busy market. Many houses and condos go under contract within days of going on the market. It’s certainly a market where buyers need to move fast as the best homes are going quickly!
Do you have a house to sell in the Iowa City area? Now is definitely the time to list it! We offer solid advice on how to get your home sold, combined with a top of the line Marketing Plan using the power of the Internet to seal the deal. This winning combo worked for our last three sellers who got offers on the same day their homes were listed!
Want to know what you’re home is worth in today’s market? A “common sense” approach to real estate means that when you call for a FREE Market Analysis you’ll get an honest and realistic assessment of your home’s value. It will be based on sound market data and include an analysis of current market conditions in the Iowa City real estate market. Give me a call at 319-400-0268 or drop me an email. I promise it will be worth your while!
Data for this market report pulled from the Iowa City MLS April 10, 2014