Facts & Trends Real Estate
Ruhl&Ruhl Realtors
Fall 2014
Markets Steadily Improving
Caroline Ruhl President
RuhlHomes.com
IN THIS ISSUE: page 4
Ruhl Mortgage Partners with Quad City Bank & Trust
page 4
Home Prices Appreciating in Our Markets
page 6
Demand Strong, yet Iowa Farmland Value Decreases
page 7
New Construction Sales and Inventory Rebound
Closed sales volume for 2014 is down 1% compared to the first nine months of 2013 across the region of eastern Iowa, northwestern Illinois and southwestern Wisconsin. This is actually good as we are improving each quarter and definitely trending in the right direction! Sales Volume By Quarter Compared to 2013 1st 2nd 3rd Year-to-Date -9% -2% +4% -1% s There is considerable variation from market to market as shown on the Regional Real Estate Activity Chart on page 2. Six of our markets are down year to date and seven of our markets are up.
What’s Happening in our Markets
1) “Sluggishness in the general economy with lower than expected job growth, stagnant household income and tight credit conditions are taking the expected toll on housing sales,” said Steve Murray, editor of the REAL Trends Housing Market Report. 2) First-time home purchases are at historic lows. They have accounted for only 28% of existing home sales year to date, according to the National Association of Realtors. This is six percentage points below the 5-year average. The economic slowdown has been especially tough on 24-35 year olds. Many recent college graduates have crushing levels of student debt and are frustrated with the challenging job market. Additionally, FHA fees and premiums have increased, hurting buyers’ ability to qualify for loans. Thankfully both Iowa and Illinois offer attractive first-time buyer bond programs. None the less, Ruhl&Ruhl’s first-time buyers only account for 24% of our total buyers, down from 26% last year. 3) It is tougher to get a mortgage. In recent testimony before Congress, Federal Reserve chairwoman Janet Yellen stated: “It has now become the
case that any borrower without a pretty pristine credit rating finds it awfully hard to get a mortgage.” 4) Slow but steady climb in home price appreciation in our markets. See page 4 for the percent change in house prices in our major markets over the past year and over the past five years. 5) Good inventory and homes for sale. Months of inventory is a good way to measure the strength of a market. Our markets are shown below. A balanced market favors neither the buyer nor the seller.
Months of Inventory
Sellers Market Balanced Market
Buyers Market
0 1 2 3 4 5 6 7 8 9 10 Burlington Cedar Rapids
10.0
DeWitt
13.5
Dubuque
5.7
Galena
25.8
Illinois QCA
5.9 4.4
Iowa City
7.2
Maquoketa Muscatine SW Wisconsin Washington
20
6.0
Clinton
Iowa QCA
15
9.1
10.0 5.4 19.0 29.3
6) Great low interest rates continue. At the time of this writing, rates were in the following ranges, with no points: 30-year conventional fixed 4.000% 15-year conventional fixed 3.375% 30-year FHA/VA 3.750% 5/1 ARM (adjustable rate mortgage) 3.000% We know these great rates can’t go on forever, so hopefully buyers will seize this opportunity. We expect a strong fourth quarter, but due to the tough winter, we anticipate 2014 to end flat compared to 2013.
2014 Regional Real Estate Activity Through September
Average 2014 Sales Price
% Change in Average Sales Price from 2013
$104,800 $163,200 $103,800 $151,700 $173,300 $192,600 $110,400 $185,400 $210,200 $115,200 $125,100 $126,300 $110,500 $161,900
-7% -3% +3% +1% +8% +9% +3% +4% +2% +4% -4% +15% +25% +1%
Burlington Area Cedar Rapids Area Clinton/Camanche/Fulton DeWitt Dubuque Area Galena & Surrounding Area Illinois Quad Cities Iowa Quad Cities Iowa City Area Maquoketa/Preston/Bellevue Muscatine/Wilton Area Southwest Wisconsin Washington Area Regional Total
2014 Number Sold
441 3,064 351 84 874 89 1,488 1,710 2,155 113 377 359 118 11,223
% Change in Number Sold from 2013
0% -3% +5% +9% +13% -2% +2% -5% -6% -10% -4% +5% +11% -2%
% Change in Sales Volume from 2013
2014 Sales Volume
$46,231,800 $499,978,900 $36,444,300 $12,740,500 $151,479,500 $17,143,400 $164,299,600 $317,032,400 $452,916,700 $13,020,100 $47,152,300 $45,326,200 $13,041,100 $1,816,806,800
Active Listing Count 2014
-7% -7% +8% +11% +22% +7% +6% -2% -4% -7% -8% +20% +39% -1%
316 1,865 365 59 531 429 978 792 1,247 110 207 413 94 7,406
% Change in Active Listings from 2013
Months of Inventory
+10% -7% +14% +23% -5% +9% -7% -1% +1% -5% -22% -10% -20% -3%
9.1 6.0 10.0 13.5 5.7 25.8 5.9 4.4 7.2 10.0 5.4 19.0 29.3
Summary of Regional Real Estate Activity
Listing Inventory
$168,700
$535,086,100
Properties Sold
2014
Average Residential Sales Price Sales Volume
Cedar Rapids Area
Listing Inventory: There are 1,865 residential properties for sale in the Cedar Rapids area; 7% fewer than the
2 • RuhlHomes.com
DeWitt
Listing Inventory: DeWitt’s listing inventory is up 23%; from 48 properties
Dubuque Area
Listing Inventory
Properties Sold
2014
2014 2013
$151,479,500
2013
$173,300
2014
$160,000
2013
874
2014
776
2013
531
Clinton, Camanche & Fulton
Listing Inventory: There are 365 properties for sale in the Clinton, Camanche and Fulton area; 14% more than the same time last year when there were 319 properties for sale. Properties Sold: 5% more properties sold and closed through the third quarter of 2014, an increase from 334 sales in 2013 to 351 sales in 2014. Average Sales Price: The average sales price through September 2014 was $103,800, a 3% increase from the average sales price of $100,800 through September 2013. Residential Sales Volume: Sales volume increased 8%, from $33,683,100 through the third quarter of 2013 to $36,444,300 through the third quarter of this year.
for sale last year to 59 properties currently for sale. Properties Sold: 84 properties sold through the third quarter of 2014, 9% more than last year when 77 properties sold. Average Sales Price: The average sales price of homes sold through September 2014 was $151,700, 1% more than last year when the average sales price was $149,700. Residential Sales Volume: Sales volume increased 11%, from $11,525,900 through September 2013 to $12,740,500 through September 2014.
$124,197,000
2013
$499,978,900
2013 2014 $163,200
2013 2014
3,064
2014
3,171
Cedar Rapids Area
1,865
2,002
2013
same time last year when there were 2,002 properties listed. Properties Sold: Through September this year, 3,064 properties sold and closed, 3% less than the 3,171 that were sold through September 2013. Average Sales Price: The average sales price was $163,200, 3% less than the average sales price of $168,700 through September 2013. Residential Sales Volume: Sales volume decreased 7%, from $535,086,100 through September 2013 to $499,978,900 through September 2014.
560
Burlington Area
Listing Inventory: There are 316 properties for sale in Burlington, Iowa and the surrounding area; a 10% increase from the same time in 2013 when there were 286 properties listed for sale. Properties Sold: There was no statistical change in the number of properties sold through the third quarter of 2014, comparing 440 sales through September 2013 to 441 sales through September 2014. Average Sales Price: The average sales price was $104,800, 7% less than the $112,700 average sales price through September 2013. Residential Sales Volume: Sales volume was down 7%, a decrease from $49,609,700 through the third quarter of 2013 to $46,231,800 through the third quarter of 2014.
Average Residential Sales Price Sales Volume
Dubuque Area
Listing Inventory: There are 531 residential properties for sale in the Dubuque area; a 5% decrease from the same time last year when there were 560 properties for sale. Properties Sold: 13% more properties sold through the third quarter of 2014, an increase from 776 closings through September 2013 to 874 closings through September 2014.
Summary continued on page 3
Summary continued from page 2
Average Sales Price: The average sales price of homes sold through September 2014 was $173,300, 8% higher than last year’s average sales price of $160,000. Residential Sales Volume: Sales volume through the third quarter of 2014 was $151,479,500, up 22% from the sales volume of $124,197,000 through the third quarter of 2013. This follows a 5% decrease in sales volume from 2012 to 2013.
Galena & Surrounding Area
Listing Inventory: There are 429 properties for sale in Galena, Illinois and the surrounding area; 9% more than the same time last year when there was 393 properties listed for sale. Properties Sold: There was a 2% decrease in the number of residential properties sold through the third quarter of 2014, comparing 91 sales in 2013 to 89 sales through September of this year. Average Sales Price: The average sales price was $192,600 through September 2014, 9% higher than the $176,800 average sales price through September 2013. Residential Sales Volume: Sales volume was up 7% in the area, an increase from $16,088,000 to $17,143,400 through September 2014.
Listing Inventory
Properties Sold
2013
$110,400
$155,414,900
2014 $164,299,600
2013 2014 $107,000
2013 2014
1,488
2014
1,453
1,049
2013
978
Illinois Quad Cities
Average Residential Sales Price Sales Volume
Illinois Quad Cities
Listing Inventory: The number of properties for sale is down 7% from the same time last year in the Illinois Quad Cities; a decrease from 1,049 listings to 978 listings currently for sale. Properties Sold: Through the third quarter of 2014, there was a 2% increase in the number of properties sold, comparing 1,453 sales to 1,488 sales through September 2014. Average Sales Price: The average sales price increased 3%, from $107,000 through September 2013 to $110,400 through September 2014. Residential Sales Volume: Sales volume increased 6%, from
$155,414,900 through the third quarter of 2013 to $164,299,600 through the third quarter of 2014.
Iowa Quad Cities
Listing Inventory: There are 792 properties for sale in the Iowa Quad Cities; 1% fewer than the same time last year when there were 797 properties for sale. Properties Sold: 5% fewer properties sold through the third quarter of 2014, a decrease from 1,808 sales in 2013 to 1,710 sales in 2014. Average Sales Price: The average sales price is up 4%, from $178,300 through September 2013 to $185,400 through September 2014. Residential Sales Volume: Sales volume decreased 2%, from $322,430,200 through the third quarter of 2013 to $317,032,400 through the third quarter of 2014.
Muscatine & Wilton Area
Listing Inventory: There are 207 homes and condominiums listed for sale in the Muscatine and Wilton area, 22% fewer than the same time last year when there were 264 properties for sale. Properties Sold: There was 4% fewer residential properties sold through the third quarter of 2014, comparing 392 sales last year to 377 sales through September 2014. Average Sales Price: The average sales price through September 2014 was $125,100, 4% less than the $130,100 average sales price through September 2013. Residential Sales Volume: Sales volume was down 8%, a decrease from $50,990,500 through September 2013 to $47,152,300 through September 2014.
Southwest Wisconsin
Listing Inventory: The number of properties for sale in Iowa City increased 1%; from 1,234 in 2013 to 1,247 homes and condominiums currently for sale. Properties Sold: Sales decreased 6% from 2,294 properties sold through the third quarter of 2013 to 2,155 properties sold through the third quarter of 2014. Average Sales Price: The average sales price is up 2%, from $205,800 through the third quarter of 2013 to $210,200 through the third quarter of 2014. Residential Sales Volume: Sales volume was $452,916,700 through September 2014, a 4% decrease from last year when it was $472,066,700.
Listing Inventory: There are 413 properties for sale in the southwest Wisconsin region, a 10% decrease from the same time last year when there were 459 listings. Properties Sold: There was a 5% increase in the number of residential properties sold through the third quarter of 2014, comparing 343 sales in 2013 to 359 sales in 2014. Average Sales Price: The average sales price through third quarter of 2014 was $126,300, 15% more than the $110,200 average sales price through third quarter of 2013. Residential Sales Volume: Sales volume was up 20%, an increase from $37,763,800 through the third quarter of 2013 to $45,326,200 through the third quarter of 2014.
Listing Inventory: There are 110 properties for sale in the Maquoketa, Preston, and Bellevue area, 5% fewer than the 116 properties listed for sale at the same time in 2013. This follows a 35% increase from 2012 to 2013. Properties Sold: 10% fewer properties sold; a decrease from 126 sales through the third quarter of 2013 to 113 sales through the third quarter of 2014. Average Sales Price: The average sales price through September 2014 was $115,200, 4% more than the average sales price through September 2013 of $110,900. Residential Sales Volume: Sales volume was down 7%, from $13,978,700 through the third quarter of 2013 to $13,020,100 through the third quarter of 2014.
Listing Inventory: There are 94 properties for sale in Washington, Iowa and the surrounding area; 20% fewer than the same time last year when there was 117 properties for sale. Properties Sold: Through the third quarter of 2014, 11% more properties sold, comparing 106 sales through September 2013 to 118 sales through September 2014. Average Sales Price: The average sales price increased 25%, from $88,500 through September 2013 to $110,500 through September 2014. Residential Sales Volume: Sales volume was up 39%, from $9,383,100 through September 2013 to $13,041,100 through September 2014. This follows a 15% decrease from 2012 to 2013.
Iowa City Area
Maquoketa, Preston & Bellevue
Washington Area
RuhlHomes.com • 3
Ruhl Mortgage Partners with Quad City Bank & Trust Ruhl Mortgage and Quad City Bank & Trust have formed a new joint venture to provide mortgage services and products to their clients. The combined entity, which will operate as Ruhl Mortgage, is pending certain regulatory approvals and will start operation in the fourth quarter of 2014. “Ruhl Mortgage, Ruhl&Ruhl Realtors and Quad City Bank & Trust all have their roots in the Quad Cities region,” said Caroline Ruhl, President of Ruhl&Ruhl Realtors. “Our companies share common philosophies: we are all relationship driven and focused on delivering extraordinary customer service.” Ruhl Mortgage offers purchase and refinance loans, including FHA, VA and Rural Development loans, second home loans, down payment and closing cost
assistance programs, and loans for investment properties and relocations. Additionally, because of the new partnership with Quad City Bank & Trust, Ruhl Mortgage will now be able to offer portfolio, bridge and new construction loans. All mortgage staff from Quad City Bank & Trust and Ruhl Mortgage is being offered positions with the new venture. The new company will be led by Jane Schneider, President. The operations center will be located at 1701 52nd Avenue, Moline, IL. The company will serve the same regional market as Ruhl&Ruhl Realtors in eastern Iowa, northwestern Illinois, and southwestern Wisconsin. Loan officers will be located in Davenport, Bettendorf, Moline, Dubuque, Iowa City, Muscatine, Clinton, and Cedar Rapids, with travel to other locations as needed. “We are a full-service mortgage banker dedicated to each relationship from application to closing,” said Jane Schneider, President of Ruhl Mortgage.
Home Prices Appreciating in Our Markets The eastern Iowa and northwestern Illinois region continues its steady climb in home price appreciation – with all of our markets showing positive gain. Nationally, home prices have increased 8.25% in the last five years. In our local markets the gains, while not as large, continue to be positive. We did not have the significant decline in home prices that other markets across the nation suffered, insulating our communities from the super highs and lows. Home prices are up: 7.83% in Dubuque; 5.11% in Iowa City; 3.64% in the Quad Cities and 2.19% in Cedar Rapids. This compares to other cities: Des Moines up 1.32% and Chicago, IL down 10.29%. This Metropolitan Statistical Areas (MSAs)
Cedar Rapids, IA Davenport-MolineRock Island, IA-IL Des MoinesWest Des Moines, IA Dubuque, IA Iowa City, IA USA
data is provided by the Federal Housing Finance Agency (FHFA) for the 2nd quarter of 2014 (see chart and website below). This spring, while not as strong as previous seasons, home price appreciation for the nation as a whole remained positive, said FHFA Principal Economist Andrew Leventis. Locally, the modest, yet steady increase in home prices has made a stable market – good for buyers and sellers. “Now is a good time to buy or sell,” said Caroline Ruhl, President of Ruhl&Ruhl Realtors. “Buyers are ready to buy and low interest rates will likely go up in 2015. If you have considered selling or buying, please contact a Realtor for a consultation.”
Percent Change in House Prices 1 Year 5 Year
2014 2nd Quarter National Ranking of 276 MSA’s*
Through September Burlington Area (Burlington Board of Realtors) Cedar Rapids Area (Cedar Rapids Area Assoc. of Southeast Cedar Rapids Northeast Cedar Rapids Southwest Cedar Rapids Northwest Cedar Rapids Hiawatha & Robins Marion East of I-380: Mechanicsville, Anamosa, Mt. Vernon, West of I-380: Walford, Fairfax, Atkins, etc. Corridor Area: Solon, Ely, Swisher Condominiums
Clinton, Camanche & Fulton (Clinton Board of Rea DeWitt (Quad City Area Realtor Assoc.) Dubuque Area (Dubuque Board of Realtors) Dubuque North, South and West Dubuque Illinois Wisconsin
Galena & Surrounding Area (Realtor Assoc. of Nor
Illinois Quad Cities (Quad City Area Realtor Assoc Rock Island Milan & Rural Rock Island County Moline Coal Valley, Rural Moline, Miscellaneous East Moline & Silvis Port Byron, Upper Rock Island County Mercer County Henry County Condominiums
Iowa Quad Cities (Quad City Area Realtor Assoc.) Davenport Bettendorf & Riverdale Blue Grass, Buffalo, Durant & Walcott LeClaire, Pleasant Valley & Princeton North Scott County Miscellaneous Condominiums
Iowa City Area (Iowa City Area Assoc. of Realtors) Iowa City Coralville Northwest Iowa City Northeast Iowa City Southeast Iowa City Southwest Iowa City Corridor Area Miscellaneous
+1.20%
+2.19%
220
Condominiums Maquoketa, Preston & Bellevue (Jackson County
+1.73%
+3.64%
205
Muscatine
+3.14%
+1.32%
149
+1.98% +2.38% +5.25%
+7.83% +5.11% +8.25%
197 185
Information courtesy of Federal Housing Finance Agency (FHFA) for second quarter 2014. FHFA stats always run one quarter behind. Their full report is accessible at www.fhfa.gov. *Rankings based on annual percentage change in house prices.
4 • RuhlHomes.com
Reg
Muscatine & Wilton Area (Muscatine Board of Rea Wilton Muscatine Outlying Condominiums Washington Area* (English River MLS)
Wisconsin - Grant & Lafayette Co. (S. Central Wisc
(This representation is based in part on data supplied by the REALT MLS) responsible for its accuracy. Data maintained by the Boards or their
gional Residential Real Estate Activity Current MLS Listings Realtors)
Lisbon, etc.
altors)
% of Active Listings
2014 Avg. Sales Price
2014 Sales Volume
2014 # Sold
% of Unit Sales
Sales/ List
2013 # Sold
2013 Avg. Sales Price
2013 Sales Volume
316
$104,800
$46,231,800
441
94%
440
$112,700
$49,609,700
1,865
$163,200
$499,978,900
3,064
98%
3,171
$168,700
$535,086,100
201
10%
160,400
42,492,900
265
8%
96%
261
158,500
41,367,100
280
14%
159,900
69,889,200
437
13%
97%
461
174,200
80,299,300
187
9%
140,600
44,288,700
315
10%
98%
279
143,100
39,936,800
143
7%
143,300
33,823,200
236
7%
97%
231
137,200
31,693,300
40
2%
246,700
16,037,100
65
2%
98%
81
256,900
20,810,100
169
9%
201,000
73,968,600
368
11%
98%
394
197,600
77,869,200
235
12%
146,300
42,852,400
293
9%
96%
337
152,500
51,408,800
188
10%
137,300
33,908,100
247
8%
96%
227
149,800
34,011,400
128
6%
270,400
50,566,600
187
6%
98%
209
273,100
57,078,400
294
21%
26%
141,600
92,152,100
651
99%
691
145,600
100,611,700
365
$103,800
$36,444,300
351
95%
334
$100,800
$33,683,100
59
$151,700
$12,740,500
84
93%
77
$149,700
$11,525,900
$173,300
$151,479,500
874
94%
776
$160,000
$124,197,000
358
531 67%
177,500
121,599,500
685
79%
95%
600
164,100
98,435,400
114
21%
153,400
20,249,400
132
15%
94%
133
149,300
19,820,500
45
9%
171,500
6,515,700
38
4%
92%
22
122,800
2,701,500
14
3%
163,900
3,115,000
19
2%
85%
21
152,800
3,209,600
rthwest IL)
429
$192,600
$17,143,400
89
83%
91
$176,800
$16,088,000
c.)
978
$110,400
$164,299,600
1,488
96%
1,453
$107,000
$155,414,900
)
s)
170
17%
88,900
22,215,600
250
17%
96%
263
87,200
22,942,000
73
7%
128,000
14,210,700
111
7%
96%
116
116,100
13,468,200
188
19%
104,600
35,877,600
343
23%
95%
340
101,100
34,371,600
41
4%
130,100
7,414,400
57
4%
97%
59
142,500
8,407,600
95
10%
100,300
21,562,200
215
14%
95%
164
95,000
15,582,700
54
6%
181,400
10,159,800
56
4%
97%
66
161,500
10,658,500
83
8%
102,400
9,215,900
90
6%
95%
87
108,100
9,408,600
208
22%
116,000
33,527,600
289
19%
95%
267
110,300
29,443,700
66
7%
6%
96%
91
122,300
11,132,000
97%
1,808
$178,300
$322,430,200 132,532,800
792
131,400
10,115,900
77
$185,400
$317,032,400
1,710
412
52%
137,000
116,477,800
850
50%
97%
945
140,200
138
17%
305,100
115,330,100
378
22%
98%
348
283,400
98,619,100
25
3%
175,200
11,215,200
64
4%
97%
79
175,400
13,854,100
48
6%
230,600
21,216,600
92
5%
97%
84
238,000
19,994,600
34
4%
218,700
18,588,800
85
5%
97%
90
213,500
19,214,100
43
5%
100,400
5,521,500
55
3%
98%
51
109,000
5,557,000
92
13%
154,200
28,682,500
186
11%
97%
211
154,800
32,658,500
1,247
$210,200
$452,916,700
2,155
98%
2,294
$205,800
$472,066,700
284
23%
252,900
134,775,500
533
25%
98%
563
256,300
144,304,400
72
6%
299,200
46,379,200
155
7%
97%
171
299,000
51,122,500
129
10%
276,600
61,135,500
221
10%
99%
234
272,700
63,807,300
44
4%
157,200
8,804,300
56
3%
96%
52
155,300
8,076,100
36
3%
153,100
6,275,200
41
2%
96%
38
153,500
5,833,000
80
6%
162,300
18,985,500
117
5%
96%
115
152,600
17,543,300
52
4%
289,800
20,573,700
71
3%
98%
84
292,000
24,531,300
264
21%
161,500
38,605,500
239
11%
97%
261
153,300
40,022,900
23%
162,600 $115,200
117,382,300 $13,020,100
722 113
34%
MLS)
286 110
99% 94%
776 126
150,500 $110,900
116,825,900 $13,978,700
altors)
207
consin)
$125,100
$47,152,300
377
96%
392
$130,100
$50,990,500
131
63%
131,100
32,650,200
249
66%
96%
272
128,700
35,004,000
15
7%
141,500
3,538,000
25
7%
95%
33
124,700
4,114,500
54
26%
102,500
8,305,100
81
21%
94%
73
132,800
9,695,000
7
4%
120,900
2,659,000
22
6%
96%
14
155,500
2,177,000
94
$110,500
$13,041,100
118
95%
106
$88,500
$9,383,100
413
$126,300
$45,326,200
359
88%
343
$110,200
$37,763,800
TOR Associations or their Multiple ListÂing Services. Neither the Boards nor their MLS guarantee or is in any way MLS may not reflect all real estate activity in the market.) *Washington Area includes Mount Pleasant and Fairfield.
RuhlHomes.com • 5
Regional New Construction Home Sales Through September Cedar Rapids Area Houses Condos/Villas Dubuque Area Houses Condos/Villas Illinois Quad Cities (Rock Island County) Houses Condos/Villas Iowa Quad Cities (Scott County) Houses Condos/Villas Iowa City Area Houses Condos/Villas Total Regional Combined
Active Inventory 9/30/12
Active Inventory 9/30/13
Active Inventory 9/30/14
% Change in Inventory from 2013
Sales 2012
Sales 2013
Sales 2014
% Change in Sales from 2013
183 113 70 64 54 10 23 4 19 80 42 38 197 104 93 547
156 94 62 54 32 22 14 5 9 94 53 41 221 121 100 539
161 108 53 65 46 19 5 2 3 118 76 42 264 150 114 613
+3% +15% -15% +20% +44% -14% -64% -60% -67% +26% +43% +2% +19% +24% +14% +14%
246 148 98 34 31 3 16 11 5 181 130 51 344 176 168 821
252 158 94 53 52 1 6 4 2 176 139 37 361 191 170 848
245 140 105 66 56 10 9 6 3 169 137 32 336 192 144 825
-3% -11% +12% +25% +8% +900% +50% +50% +50% -4% -1% -14% -7% +1% -15% -3%
Demand Strong, yet Iowa Farmland Value Decreases Despite a decrease in the value of cropland across the state of Iowa, there continues to be high demand for certain types of land. The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average decrease of cropland values of 8.8% for the year from September 1, 2013 to September 1, 2014. This follows an average increase of cropland values of 10.6% for the year from September 1, 2012 to September 1, 2013; and an average increase of 18.5% for the year from September 2011 to September 2012. “The slight decline in land prices is a direct result of lower commodity prices and net farm revenue, however there is still high demand and low supply of quality farms,” said Eric Schlutz, ALC, Realtor and Manager of the Ruhl&Ruhl Realtors Muscatine Office. “We are also starting to see investor movement, driven by assets
leaving the stock market, into more stable land investments and a means of diversification.” The survey attributed the current land values to lower commodity prices, increasing interest rates, a lack of stable alternative investments, amounts of cash on hand and the limited amount of land on the market. To see land values in dollars per acre for various parts of the state and by quality of cropland, please go to
RuhlLand.com.
For local experts, the survey results don’t necessarily show the whole picture, stating that land will always be a hot commodity. “Some farmers remain in a good cash position, so when good land becomes available they are ready to buy and will pay top dollar,” said Ken Paper, Accredited Land Consultant and Realtor at Ruhl&Ruhl Realtors. “As the amount of tillable land shrinks, due to expansion of the urban communities, fewer acres are available for farming. No more land is being created.”
For the survey, participants are asked to estimate the average value of farmland as of September 1, 2014. These estimates are for bare, unimproved land with a sale price on a cash basis. Pasture and timberland values were also requested as supplemental information. Two of the nine Iowa crop reporting districts showed an increase in the last 6 months.
A division of Ruhl&Ruhl Realtors
Combined Iowa & Illinois Quad Cities MLS Statistics Through September Current MLS Listings Average Sales Price Total Sales Volume Total # of Sales YTD 6 • RuhlHomes.com
2010
2011
2012
2013
2014
2,086 $141,500 $384,509,400 2,718
2,176 $138,100 $366,783,600 2,655
1,842 $145,900 $438,962,200 3,009
1,846 $146,500 $477,845,100 3,261
1,770 $150,500 $481,332,000 3,198
% Change 2013 vs. 2014 -4% +3% +1% -2%
New Housing Starts Through September Burlington Area Burlington West Burlington Cedar Rapids Area Cedar Rapids Marion Rural Linn County Hiawatha & Mechanicsville Areas Dubuque Area Dubuque East Dubuque Galena Jo Daviess County Peosta Surrounding Dubuque Area Illinois Quad Cities Moline & Coal Valley Rock Island East Moline & Hampton Colona Port Byron Geneseo Rural Rock Island County & Milan Silvis Whiteside County Iowa Quad Cities Davenport Bettendorf Rural Scott County Eldridge & Long Grove LeClaire & Princeton Blue Grass - city of Iowa City Area Iowa City Coralville North Liberty Rural Johnson County West Branch Williamsburg, Wellman & Kalona West Liberty Muscatine Area Muscatine Muscatine County Wilton Other Areas Clinton DeWitt Maquoketa, Preston & Bellevue Washington Area* Total Regional Starts Des Moines Area**
2011 2008
2012
2013
2014
3 3 0 433 255 110 53 15 241 77 1 1 26 8 128 106 19 1 7 8 3 7 27 12 22 256 72 99 29 32 17 7 276 75 38 129 24 1 5 4 17 7 8 2 20 12 4 4 N/A 1,352
15 14 1 377 197 127 43 10 286 96 2 0 35 8 145 101 15 17 5 7 1 9 20 2 25 325 92 107 50 34 39 3 354 114 42 128 45 8 17 0 27 13 13 1 22 6 3 12 1 1,507
17 15 2 402 187 141 56 18 282 86 2 1 25 15 153 104 11 11 7 19 1 2 24 1 28 618 78 130 190 42 174 4 303 120 39 74 50 8 11 1 23 2 18 3 23 3 5 11 4 1,772
16 10 6 397 227 110 46 14 245 67 7 2 21 13 135 92 10 21 1 6 1 10 29 2 12 270 46 124 43 22 24 11 324 128 24 132 33 3 4 0 33 10 16 7 40 11 9 14 6 1,417
N/A
1,389
1,742
1,549
% Change 2013 vs. 2014 -6% -33% +200% -1% +21% -22% -18% -22% -13% -22% +250% +100% -16% -13% -12% -12% -9% +91% -86% -68% 0% +400% +21% +100% -57% -56% -41% -5% -77% -48% -86% +175% +7% +7% -38% +78% -34% -63% -64% -100% +43% +400% -11% +133% +74% +267% +80% +27% +50% -20% -11%
Source: Municipal offices. There may be additional new homes built which are not included with this data. *Des Moines Area and Washington Area were recently added and little or no past data is available. **Des Moines Area is comprised of Adel, Altoona, Ankeny, Clive, Des Moines, Indianola, Johnston, Pleasant Hill, Polk City, Urbandale, Waukee, & West Des Moines.
New Construction Sales and Inventory Rebound Year to date sales figures, as reported by Multiple Listing Services, reveal a decrease in new house sales of 2%, with condo sales down 3% for 2014. The condo sales figure actually reflects a 3rd quarter surge in sales, as they were down 12% at the end of the 2nd quarter. In fact, if a large slump in sales in the North Liberty market segment is disregarded, the remainder of the overall region shows a 3% increase in total sales over 2013. Please refer to the charts on pages 6 and 7 for local details on sales, inventory and new housing starts. The breakdown below shows continued upward movement in houses and condos: Houses: Condos: Below $300K = 40% Below $200K = 59% $300-$400K = 40% $200-$300K = 34% Above $400K = 20% Above $300K = 7% The aforementioned surge in condo sales has increased their market share to 36% of total year-to-date sales, as opposed to houses at 64%. Ranch style houses continue to be the regional favorite, but two story and split level houses are becoming increasingly popular in many areas. Following is a brief summary of activity in each of the major market areas: CEDAR RAPIDS: An 11% decrease in house sales and a 12% increase in condo sales have combined for a 3% overall fall in combined year-to-date sales. Overall unit inventory is up 3% vs. the same time last year, equating to about a 5 month supply of new homes. New homes account for 1 of every 8.3 sales. DUBUQUE: The area continues strong growth in sales. Year-to-date sales are up 25% with gains in both house and condo sales. Unit inventory has increased by 20% and has resulted in slightly less than 8 months of available supply. Yearto-date, 1 in every 13.2 home sales has been new construction. IOWA CITY: House sales were up by 1 unit, while condo sales dropped by 15%, combining for an overall decrease of 7% in year-to-date sales. The North Liberty area continues a slow sales year with year-to-date sales down 26% vs. 2013. Iowa City has recorded increases in both house and condo sales, for an overall climb of 23%. Area inventories are up 19% over a year ago, resulting in just over 5 months of supply on hand. As a strong new homes market, 1 of every 5.6 homes sold year-to-date has been new. Sales and Inventory Rebound continued on page 8 RuhlHomes.com • 7
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Sales and Inventory Rebound continued from page 7
QUAD CITIES: Overall sales are down 2% year-to-date, with house sales stable while condo sales are down 10%. New home inventory is up 12% vs. the same time last year. While condo sales represent 36% of market-wide sales, in this market they have accounted for 19%
of sales. The Quad Cities’ new home sales total ranks behind all other regional markets with only 1 in every 15 sales coming from new construction. With a regional decrease in unit sales of 3%, predictions of a “flat” new homes market for 2014 are holding true. We do gain encouragement from the increase
in available inventory of 14%, stabilized interest rates and materials costs plus some delays in additional regulations for the industry. A rebirth of housing development projects of various types and price ranges also speaks to a more positive attitude on the part of builders and developers.
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