There is some surprising data to share with buyers and sellers in today’s market snapshot of the Iowa City real estate market. Very surprisingly, home sales are down for the month in Iowa City. 92 homes sold in May 2015 compared to 139 in May 2014.
At the same time, 45% of the homes on the market are under contract. That’s a very good sign that there are lots of buyers out writing contracts. Those are two bits of information that give conflicting messages about the real estate market in Iowa City. Lots of buyer activity and less homes selling, how can that be? The only explanation can be is that buyers aren’t finding what they are looking for. On closer examination I can share one important fact that is probably a contributing factor to the lower home sales this month. There are currently 367 homes listed for sale on the MLS and only 85 of those homes are priced under $200,000. Clearly buyers don’t have many choices in the lower price ranges!
Market Snapshot Iowa City May 31, 2015
How long did it take houses and condos to sell in Iowa City in May? The chart below shows that 16 of the 92 homes sold took more than 90 days to sell. Most sellers would agree that to get a house or condo from listing to sold in under 90 days is a very reasonable time on market. This quick turnover rate of homes is another indicator for a strong real estate market. It should be noted, if you are a seller sitting on a house that’s not selling in Iowa City, it’s always good to reevaluate the situation every 30 days, just to make sure you’re still positioned where you need to be to get an offer.
Number of Homes Sold / Days on Market May 31, 2015
Looking at home sales tells us what’s been going on in the market in the past. To get a feel for what’s going on in “real time” it’s a good idea to look at the contract to listing ratio. This tells us how many buyers are out and about writing contracts. 45% of the homes in Iowa City listed on the MLS are under contract. That’s an 3% increase over last month and further proof of an active real estate market in Iowa City.
Contract to Listing Ratio Iowa City May 31, 2015
My market snapshots look at 3 data points to evaluate the Iowa City real estate market. This month we have two positive and one negative. Even with the conflicting data, overall there’s no disputing that the Iowa City real estate market is in great shape. There are lots of buyers out and about and an increase in sellers listing their homes too. At present there is a shortage of homes for sale in Iowa City in the lower and mid price ranges. That needs to change before we can be “3 for 3” again.
Are you looking for the right Realtor to help you navigate the complexities of the real estate market, all the while looking out for you and your money? Sound advice and guidance is just a phone call, text or email away. Call Denise now at 319-400-0268.
Data provided via the Iowa City MLS May 31, 2015