It’s the middle of June and high time to catch up on my market reports for May. The number of homes sold in May was up by 8% compared to 2011. 104 homes sold in Iowa City May 2012 compared to 96 in May 2011.
When you look at the chart you’ll see that condo sales are up by 75%, which is really good news as Iowa City has A LOT of condos. Single family home sales are down a bit compared to 2011. That trend continues with the average price for a single family home down compared to 2011, while the average price for condos is up. There’s still too much inventory on the market to see any major increases in prices. Once the inventory goes down that will change.
The absorption rate is down a little this month at 6.4 months, that’s an average of 192 days on market. The calculation for the absorption rate uses data taken from active listings AND the number of homes sold. There are currently 232 homes on the MLS marked as either contingent or pending. Once they start closing in greater numbers the absorption rate will go down and houses in Iowa City will spend less time on the market.
So what exactly does all this data mean to you as a home buyer or home seller in Iowa City?
If you’ve got a house to sell in Iowa City, there are more buyers out and about this year so your chances of selling your home in shorter time frame are better than they have been in the last few years. That said, with so many homes on the market sellers in Iowa City do have a lot of competition. The trick is to make sure your house is priced right and in great showing shape. There are plenty of buyers out and about, you just need to make sure your home gets noticed!
If you’re thinking of buying a home in Iowa City, we still have something of a buyer’s market. There is still too much inventory on the market for that to change yet. That said, well priced homes that show well are selling fast. If you see something you like, don’t think about it too long or you may miss out. There are more buyers out and about this year so it’s not just sellers that need to worry about competition. I’ve been in a couple of multiple offer situations this year, a definite sign that the “buyer’s market” is on its way out!
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. Sound advice and guidance is just a phone call or email away!
Data for the market report for May collected from the Iowa City MLS June 14, 2012