The real estate market in Iowa City is hot. You probably don’t need me to tell you that. The number of real estate signs with sale pending riders on them are a dead give away! The question is just how hot is the real estate market in Iowa City? 108 Homes sold in Iowa City in May 2016 compared to 100 in May 2015. That may not sound like a huge increase, but when you look at the chart below and see just how many homes are contingent or sale pending and waiting to close you can see that there’s plenty of activity in the Iowa City real estate market, with lots of buyers out and about writing contracts.
Contract to Listing Ratio
Iowa City May 31, 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. 53% of homes currently listed on the Iowa City MLS are contingent or sale pending. That compares to 45% at this time last year. When there are more homes under contract than listings available for sale, then you know you’ve got a hot market. 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
Single family home sales are down compared to May 2015. 65 single family homes sold in in May 2016 compared to 74 in May 2015. It’s sure to be lack of inventory that’s caused the shortfall. At the same time, condo sales are up in Iowa City compared to last year. 37 condos sold in May 2016 compared to 23 in May last year.
Number of Homes Sold / Days on Market
Iowa City May 31, 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 shows that the trend is towards a lower market time with 60% of homes closing in under 60 days.
What’s the takeaway for buyers and sellers in Iowa City from this market snapshot? There are plenty of opportunities for sellers who are ready to sell their homes. Buyers on the other hand need to be on top of their game. In a hot market buyers need to be quick to get the best homes. Hiring a (good) Buyer’s Agent will be the first step for the savvy home buyer. In fact in a real estate market short on inventory a (good) agent is a great asset when it comes to making sure you don’t miss out on any “hot” listings when they hit the market.
When you’re ready to work with an agent completely committed to making sure you get exactly what you want out of your buying or selling experience, Call Denise at 319-400-0268. You really can’t put a price on piece of mind!
Data provided via the Iowa City MLS May 31, 2016