Home Sales in Iowa City were up again in February. 22 homes sold in Iowa City February 2012 compared to 21 in February 2011. That’s not as impressive as January when home sales were up significantly compared to last year. I don’t think this means the Iowa City real estate market is slowing down though since there are currently 81 homes marked as contingent or sale pending right now on the Iowa City MLS, a really good sign that we have a lot of closings coming up!
The absorption rate has increased to 6.5 months, that’s an average of 196 days on market. The calculation for the absorption rate factors in the number of homes currently listed as active on the MLS. With spring just around the corner the number of homes on the market has risen quite a bit since last month, which is likely the explanation as to why the absorption rate / number of days on market is going up at the moment and not down. (The link at the start of this paragraph takes you to a post I wrote a while back on how the absorption rate is calculated).
All the signs show that the real estate market in Iowa City is picking up. 8 straight months of positive data speaks for itself! If you have a house to sell, now would be a really good time to put that plan into action. Spring and early summer is typically the time in Iowa City when the most buyers are out and about. Getting your house on the market when there are the most buyers to see it is a very good idea!
Data for the market report for February collected from the Iowa City MLS March 5, 2012