After a strong start to the year, home sales are down in February in Iowa City. 38 Homes Sold in Iowa City this month compared to 49 in February 2015. This however is one time we needn’t pay too much attention to the lower number of homes sold. The Iowa City real estate market is as strong as ever with many homes listed under contract within days of hitting the market. The reason for the shortfall this month is a lack of inventory of homes on the market. The numbers don’t lie and when we look at the contract to listing ratio, we see that the number of homes showing as contingent or sale pending on the Iowa City MLS is much higher than this time last year. At the same time there are a lot fewer homes on the market this year than last year. We’ve got plenty of buyers looking for houses and condos in Iowa City. What we need are more sellers to list their homes for sale!
Contract to Listing Ratio
Iowa City February 29, 2016
The contract to listing ratio gives us the strongest data to show how the Iowa City real estate market is trending and that’s why it’s the first chart in this update today. 40% of homes currently listed on the Iowa City MLS are contingent or sale pending. That compares to 26% at this time last year. That’s an excellent sign there will be a lot of closings in the next month or two. The chart also shows the number of homes currently listed as active on the MLS. That number is also much lower than last year. The inventory of homes in all price ranges is low in Iowa City. This is not great for buyers, but offers opportunities for sellers.
Homes Sold in Iowa City
February 29, 2016
The bright spot in the lower number of homes sold in February is that although single family home sales are down for the month, condo sales are up in Iowa City compared to last year. 12 condos sold in February 2016 compared to 9 in February last year.
Number of Homes Sold / Days on Market
Iowa City February 29, 2016
Knowing how long it takes for homes in Iowa City to sell is good information to have for both buyers and sellers. It’s a way of “taking the pulse” of the market to see whether homes are selling quickly or taking longer to sell. This month just as many homes sold under 30 days as over 90 days. The bar chart gives a clear picture that the trend is turning towards a shorter time on market. There is still some winter inventory to work through, but with so many buyers entering the marketplace for the spring market the time homes spend on the market is sure to go down in the coming months.
Spring starts early when it comes to real estate in Iowa City. It’s absolutely no surprise to see strong buyer activity at this time of the year. It’s also no surprise to see the lack of choices with sellers not quite ready to list their homes yet. Real estate agents and sellers aren’t always on the same page as to when the best time is to list a home in Iowa City. I’m very consistent in telling my seller clients that the earlier the better. If you’ve got a house or condo to sell in Iowa City. Now is the very best time to list it!
Looking to buy a home in Iowa City? Hiring a (good) Buyer’s Agent will be your first step to ensuring yours is a smooth and easy real estate transaction. In fact in a real estate market short on inventory a good agent is the best friend you can have. She’ll be the one with eyes and ears to the ground, making sure you don’t miss out on that “hot” property when it hits the market. When you’re ready to work with an agent completely committed to finding you the right home to fit your lifestyle, at the right price of course, Call Denise at 319-400-0268. You really can’t put a price on piece of mind!
Data provided via the Iowa City MLS February 29, 2016