March saw another great month for home sales in Iowa City. 48 homes sold in Iowa City March 2012 compared to 41 in March 2011. That makes 9 straight months of positive data. At this point it’s safe to say the Iowa City real estate market is out of the woods and is well on its way to becoming a more balanced market.
When you look at the chart you’ll see that single family home sales are what buyers in Iowa City are looking for. Buyers are still putting lots of pressure on prices though, with prices for single family homes and condos down compared to last year. This isn’t surprising considering the number of homes on the market in Iowa City. That’s basic supply and demand economics at work. Until the inventory of homes on the market in Iowa City goes down the prices are unlikely to rise.
The absorption rate increased to 7 months, that’s an average of 213 days on market. The calculation for the absorption rate factors in the number of homes currently listed as active on the MLS. At this time of the year lots of homes come on the market, that’s why the absorption rate / number of days on market is on the rise at the moment and not going 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).
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, now is the time to get it on the market. You want to have your house on the market at a time when there are the most buyers out there to see it. And that just happens to be spring and early summer. 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. I was out with first time home buyers relocating to Iowa City last weekend and 7 of the homes they wanted to see had accepted offers! If you’re in the market to buy a home this year you should get out and do it. Now is not the time to dilly dally. The market has bottomed out and it’s on the way up again now. Home prices are still low, interest rates are also still phenomenally low. Buyers still have lots of choices. The question is just how much longer these perfect conditions for buyers can last…
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 March collected from the Iowa City MLS April 4, 2012