Facts & Trends Real Estate
Ruhl&Ruhl Realtors
Fall 2015
2015 Home Sales Remain Strong Expect Better 4th Quarter
Caroline Ruhl President
RuhlHomes.com
IN THIS ISSUE: page 4
Home Prices Appreciate in Iowa and Illinois
page 4
New Mortgage Process May Slow Transactions
page 6
Land Values Decrease 11.3% in Iowa
page 6
$5,000 Grants Available to Iowa Veterans
page 7
Dip in 3rd Quarter New Construction Sales
Closed sales volume for 2015 is up 14% compared to the first nine months of 2014 across the region of eastern Iowa, northwestern Illinois and southwestern Wisconsin. There is considerable variation from market to market as shown on the Regional Real Estate Activity Chart on page 2. Sales volume is up in 11 of our markets/MLS’s through September, while sales volume was down in three of our markets/MLS’s. Ruhl&Ruhl Realtors expects the fourth quarter to continue to be strong for a number of reasons: 1. Pending Sales (Not Yet Closed) Are Up: Ruhl&Ruhl Realtors’ pending sales in September were up 13.6% over September 2014 and pendings in the first two weeks of October were up 18.8%. 2. Interest Rates Lower than this Time Last Year: As of October 14, rates were in the following ranges, with no points: Conventional Fixed 15-year 3.000% Conventional Fixed 30-year 3.750% VA*/FHA 30-year 3.625% 5/1 ARM (adjustable rate mortgage) 3.125% *see article on page 6 about $5,000 grants available to Iowa Veterans.
3. Fed Rate Increase Potential Impact: While the Federal Reserve hasn’t raised rates yet, it could potentially decide before the end of the year to increase interest rates for the first time since 2008. Commentary from Steve Murray of RealTrends notes: “In the last 40 years, I have noted that once the Fed begins to raise rates, the reaction of the housing market is for buyers who may have been on the sidelines to jump in before rates rise further. A small rise will provide some impetus for those wanting to get in
become more motivated to do so.” 4. Inventory Balanced – Neither Buyer’s nor Seller’s Market: A balanced market is considered 4-6 months of inventory, and that is what we have in most of our markets as shown in the activity chart on page 2. A seller’s market is considered 0-3 months of inventory, and that doesn’t apply to any of our markets. A buyer’s market is considered 7 months or more of inventory, and that exists in Clinton/Camanche/Fulton, DeWitt, Galena & Galena Territory, Iowa City Area, Washington Area and Southwest Wisconsin. 5. Home Prices Continue to Appreciate: Slowly but steadily, as shown on page 4. Residential real estate is a safe and wise investment.
“Ruhl&Ruhl Realtors’ pending sales in September were up 13.6% over September 2014 and pendings in the first two weeks of October were up 18.8%.” Our biggest concern: first-time buyers are still missing in action. 24-35 year olds were particularly impacted by the economic downturn - facing a tough job market and many with crushing levels of student debt. In 2008, nearly 40% of our buyers were first-time buyers. This has steadily declined for Ruhl&Ruhl Realtors 26% in 2013, 24% in 2014 and 22% yearto-date in 2015. While this has fueled the rental market, it leaves a void of buyers enabling the move-up market.
2015 Regional Real Estate Activity Through September
Average 2015 Sales Price
% Change in Average Sales Price from 2014
2015 Number Sold
% Change in Number Sold from 2014
2015 Sales Volume
% Change in Sales Volume from 2014
Active Listing Count 2015
% Change in Active Listings from 2014
Months of Inventory
Burlington Area $121,600 +16% 390 -12% $47,426,900 +3% 235 -26% 6.6 Cedar Rapids Area $171,700 +5% 3,583 +17% $615,239,500 +23% 2,172 +16% 5.5 Clinton/Camanche/Fulton $92,100 -11% 342 -3% $31,503,900 -14% 322 -12% 9.0 DeWitt $154,000 +2% 96 +14% $14,783,400 +16% 37 -37% 7.4 Dubuque Area $171,400 -1% 866 -1% $148,416,700 -2% 484 -9% 5.0 Galena & Galena Territory $191,000 -1% 108 +21% $20,627,800 +20% 416 -3% 16.6 Galesburg Area $84,600 +1% 547 +10% $46,276,100 +11% 254 N/A 4.8 Illinois Quad Cities $119,500 +8% 1,648 +11% $196,925,100 +20% 915 -6% 5.2 Iowa Quad Cities $191,600 +3% 1,749 +2% $335,119,500 +6% 806 +2% 5.0 Iowa City Area $216,600 +3% 2,436 +13% $527,570,300 +16% 1,194 -4% 7.0 Maquoketa/Preston/Bellevue $116,100 +1% 154 +36% $17,874,100 +37% 108 -2% 5.4 Muscatine/Wilton Area $135,500 +8% 452 +20% $61,242,500 +30% 182 -12% 5.3 Washington Area $110,900 0% 123 +4% $13,642,600 +5% 90 -4% 8.0 Wisconsin (Southwest) $123,800 -2% 356 -1% $44,075,500 -3% 350 -15% 18.0 Regional Total $165,000 +4% 12,850 +10% $2,120,724,000 +14% 7,565 -1%* Several MLS mergers are causing some data to be suspect. The Washington MLS merged into the Iowa City MLS and data may be reflected in both markets. The Clinton MLS recently merged with the Quad Cities MLS. Maquoketa MLS members are merging with either the Quad Cities MLS or the Dubuque MLS. *Regional total % change in active listings is based on 2015 totals without Galesburg Area (7,311) compared to 2014 totals without Galesburg Area (7,406).
Summary of Regional Real Estate Activity Burlington Area
Listing Inventory: There are 235 properties listed for sale in Burlington, Iowa and the surrounding area, a 26% decrease from the same time last year when there were 316 properties for sale. Properties Sold: 12% fewer residential properties sold year-to-date than the same time period last year, comparing 441 sales in 2014 to 390 sales in 2015. Average Sales Price: The average sales price was $121,600, a 16% increase from the average sales price of $104,800 through the first three quarters of 2014. Residential Sales Volume: Sales volume was up 3%, an increase from $46,231,800 through September 2014 to $47,426,900 through September 2015.
Cedar Rapids Area
Listing Inventory: There are 2,172 properties listed for sale in the Cedar Rapids area, 16% more than the same time last year when there were 1,865 properties listed. Properties Sold: Through September this year 3,583 properties sold, 17% more than the 3,064 that sold through September 2014. Average Sales Price: The average sales price was $171,700 through September 2015, 5% more than the average sales price of $163,200 through September 2014. 2 • RuhlHomes.com
Residential Sales Volume: Sales volume increased 23% from $499,978,900 through the third quarter of 2014 to $615,239,500 through the third quarter of 2015.
Clinton, Camanche & Fulton
Listing Inventory: There are 12% fewer properties listed for sale, comparing 322 current listings to 365 properties for sale last year. Properties Sold: 3% fewer properties sold through the third quarter of 2015, a decrease from 351 sales in 2014 to 342 sales in 2015. Average Sales Price: The average sales price through September 2015 was $92,100, an 11% decrease from the average sales price of $103,800 through September 2014. Residential Sales Volume: Sales volume was down 14%, from $36,444,300 through September 2014 to $31,503,900 through September 2015.
DeWitt
Listing Inventory: DeWitt’s listing inventory is down 37%, from 59 properties listed for sale last year to 37 properties currently on the market. Properties Sold: 96 properties sold and closed during the first three quarters of 2015, a 14% increase compared to 84 sales in 2014. Average Sales Price: The average
sales price of homes sold through September 2015 was $154,000, 2% more than last year when the average sales price was $151,700. Residential Sales Volume: Sales volume increased 16%, from $12,740,500 through September 2014 to $14,783,400 through September 2015.
Dubuque Area
Listing Inventory: There are 484 properties listed for sale, a 9% decrease from the same time last year when there were 531 properties for sale. Properties Sold: 1% fewer properties sold through the third quarter of 2015, a decrease from 874 closings in 2014 to 866 closings in 2015. Average Sales Price: The average sales price of homes sold through September 2015 was $171,400, a 1% decrease over the average sales price of $173,300 through September 2014. Residential Sales Volume: Sales volume through the third quarter of 2015 was $148,416,700, down 2% from the same period in 2014 when sales volume was $151,479,500.
Galena & Galena Territory
Listing Inventory: There are 416 properties for sale in Galena, Illinois and the surrounding area, 3% fewer than the same time last year when there were 429 listings.
Summary continued on page 3
Summary continued from page 2
Properties Sold: There was a 21% increase in the number of properties sold through the third quarter of 2015, comparing 89 sales in 2014 to 108 sales in 2015. Average Sales Price: The average sales price was $191,000 through September 2015, 1% less than last year when the average sales price was $192,600. Residential Sales Volume: Sales volume was up 20%, an increase from $17,143,400 through September 2014 to $20,627,800 through September 2015.
Galesburg Area
Listing Inventory: There are 254 properties currently listed for sale. This is the first year we have tracked this data. Properties Sold: Sales increased 10% from 496 properties sold through the third quarter of 2014 to 547 through the third quarter of 2015. Average Sales Price: The average sales price was $84,600 through September 2015, 1% more than the average sales price of $83,700 through September 2014. Residential Sales Volume: Sales volume increased 11% through the third quarter of 2015, from $41,515,200 to $46,276,100.
Illinois Quad Cities
Listing Inventory: The number of properties for sale in the Illinois Quad Cities is down 6%, from 978 listings in 2014 to 915 listings currently for sale. Properties Sold: Through the third quarter of 2015, 11% more properties sold, comparing 1,488 sales through September 2014 to 1,648 sales through September 2015. Average Sales Price: The average sales price was up 8%, from $110,400 through September 2014 to $119,500 through September 2015. Residential Sales Volume: Sales volume increased 20% through the third quarter of 2015, from $164,299,600 to $196,925,100.
Iowa Quad Cities
Listing Inventory: There are 806 homes and condominiums listed for sale,
2% more than the same time last year when there were 792 properties for sale. Properties Sold: 2% more properties sold through the third quarter of 2015, an increase from 1,710 sales in 2014 to 1,749 sales this year. Average Sales Price: The average sales price increased 3%, from $185,400 through September 2014 to $191,600 through September 2015. Residential Sales Volume: Sales volume went up 6% from $317,032,400 through September 2014 to $335,119,500 through September 2015.
Iowa City Area
Listing Inventory: The number of properties for sale is down 4%, a decrease from 1,247 in 2014 to 1,194 properties currently on the market. Properties Sold: 13% more properties sold during the first three quarters of 2015, an increase from 2,155 sales in 2014 to 2,436 sales in 2015. Average Sales Price: The average sales price was $216,600, a 3% increase from the first three quarters of 2014 when the average sales price was $210,200. Residential Sales Volume: Sales volume increased 16%, from $452,916,700 through September 2014 to $527,570,300 through September 2015.
Maquoketa, Preston & Bellevue
Listing Inventory: There are 108 properties for sale, 2% fewer than the same time last year when there were 110 properties listed for sale. Properties Sold: 36% more properties sold during the first three quarters of 2015, an increase from 113 sales in 2014 to 154 sales in 2015. Average Sales Price: The average sales price of homes sold through September 2015 was $116,100, 1% more than the average sales price of $115,200 through September 2014. Residential Sales Volume: Sales volume increased 37%, from $13,020,100 through the first three quarters of 2014 to $17,874,100 through the first three quarters of 2015.
Muscatine & Wilton Area
Listing Inventory: There are 182 properties listed for sale, 12% fewer than the same time last year when there were 207 properties for sale. Properties Sold: 20% more residential properties sold through the first three quarters of 2015, comparing 452 sales this year to 377 sales last year. Average Sales Price: The average sales price was $135,500, an 8% increase from the average sales price through the third quarter of 2014 of $125,100. Residential Sales Volume: Sales volume was up 30%, from $47,152,300 through September 2014 to $61,242,500 through September 2015.
Washington Area
Listing Inventory: There are 90 properties for sale, a 4% decrease from the same time last year when there were 94 properties for sale. Properties Sold: Through the third quarter of 2015, 4% more properties sold, comparing 118 sales in 2014 to 123 sales in 2015. Average Sales Price: The average sales price was $110,900 through September 2015, no statistical change from $110,500 through the first three quarters of 2014. Residential Sales Volume: Sales volume was up 5%, an increase from $13,041,100 through September 2014 to $13,642,600 through September 2015.
Wisconsin (Southwest)
Listing Inventory: There are 350 properties for sale in the southwest Wisconsin region, a 15% decrease compared to the same time last year when there were 413 listings. Properties Sold: There were 356 properties sold through third quarter this year, which is 1% less than the 359 properties that sold in 2014. Average Sales Price: The average sales price through September 2015 was $123,800, a 2% decrease from $126,300 through September 2014. Residential Sales Volume: Sales volume was down 3%, a decrease from $45,326,200 through September 2014 to $44,075,500 through September 2015.
Quad Cities MLS Statistics - Iowa & Illinois Combined Through September Current MLS Listings Average Sales Price Total Sales Volume Total # of Sales YTD
2011
2012
2013
2014
2015
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
1,721 $156,600 $532,044,600 3,397
% Change 2014 vs. 2015 -2.8% +4.1% +10.5% +6.2%
RuhlHomes.com • 3
Home Prices Appreciate in Eastern Iowa & Northwestern Illinois The eastern Iowa and northwestern Illinois region continues its steady climb in home price appreciation with all of our local markets showing positive gains. As reported by the Federal Housing Finance Agency (FHFA), home prices are up: 2.81% in Dubuque; 3.72% in Iowa City; 2.44% in the Quad Cities and 1.59% in Cedar Rapids. “Home price growth in the second quarter once again far exceeded the pace of overall inflation, even as mortgage rates drifted upwards,” said Federal Housing Finance Agency Principal Metropolitan Statistical Areas (MSAs)
Cedar Rapids, IA Davenport-MolineRock Island, IA-IL Des MoinesWest Des Moines, IA Dubuque, IA Iowa City, IA USA
Economist Andrew Leventis. Nationally, home prices have increased 5.39% from the second quarter of 2014 to the second quarter of 2015 with every state showing positive gain. “Now is a great time to buy or sell,” said Caroline Ruhl, President of Ruhl&Ruhl Realtors. “Interest rates are still at historically low levels and the markets are balanced meaning neither a buyer’s nor a seller’s market. If you have considered selling, or would like to have a comparative market analysis on your home, please contact a Realtor.”
Percent Change in House Prices 1 Year 5 Year
2015 2nd Quarter National Ranking of 271 MSAs*
Through September Burlington Area (Burlington Board of Realtors)
Cedar Rapids Area (Cedar Rapids Area Assoc. of R Southeast Cedar Rapids Northeast Cedar Rapids Southwest Cedar Rapids Northwest Cedar Rapids Hiawatha & Robins Marion
East of I-380: Mechanicsville, Anamosa, Mt. Vernon, L West of I-380: Walford, Fairfax, Atkins, etc. Corridor Area: Solon, Ely, Swisher Condominiums
Clinton, Camanche & Fulton (Quad City Area Realto DeWitt (Quad City Area Realtor Assoc.) Dubuque Area (Dubuque Board of Realtors) Dubuque
+1.59%
+3.92%
250
+2.44%
+6.71%
224
Illinois
+3.60%
+8.28%
177
Galena & Galena Territory (Realtor Assoc. of North
+2.81% +3.72% +5.39%
+9.59% +9.02% +16.32%
212 170
Illinois Quad Cities (Quad City Area Realtor Assoc.
Information courtesy of Federal Housing Finance Agency (FHFA) for second quarter 2015. 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.
New National Mortgage Process May Slow Real Estate Transactions On October 3, 2015, a new TILA RESPA Integrated Disclosure (TRID) rule went into effect from the Consumer Financial Protection Bureau (CFPB) requiring new disclosure forms and longer time frames to approve documentation during the lending process. For example, the closing disclosure (CD) must be provided to a client three days before closing. This means that closings will be pushed back: a) if the paperwork is not correct, b) if the paperwork is not provided in a timely manner or c) if certain changes are made to the annual percentage rate (APR) or loan product. Pushing back a closing date to a buyer or seller could mean that they have nowhere to stay as people often plan their housing (and moving dates) around the closing. Also, this new rule makes it mandatory for people to take seven business days from the time of receipt of the Loan Estimate (LE) to closing. Both the CD and LE replace documents that were used previous to the October 3rd deadline. The LE replaces the Good Faith Estimate and the Truth in Lending. The CD 4 • RuhlHomes.com
Reg
replaces the HUD1 Settlement statement. “Now, more than ever, you want to be careful in selecting your real estate partner,” said Jane Schneider, President of Ruhl Mortgage. “Look for a Realtor and a Loan Officer who understand the new rules and can help you easily navigate the process of buying or selling your home.” You can help avoid any delays in your real estate transaction with these tips: • Partner with a Realtor, loan officer and attorney who understand the new rules and can navigate them. • Give your loan officer any documents that are necessary to complete the loan as soon as possible. • Upon receipt of the LE, take time to ask questions and understand it to avoid any last-minute changes. • Start the home inspection process as early as you can. • Schedule your final walk-through well before the CD is issued. Most of all, you should have a plan in case your transaction gets delayed. Call 563-441-1862 or visit RuhlMortgage.com for more information.
North, South and West Dubuque Wisconsin
Galesburg Area (W. Central IL Association of Realto 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 Condominiums Maquoketa, Preston & Bellevue (Jackson Co. MLS
Muscatine & Wilton Area (Muscatine Board of Real Muscatine Wilton Muscatine Outlying Condominiums
Washington Area (Iowa City Area Assoc. of Realtor Wisconsin - Grant & Lafayette Co. (S. Central Wisc
This representation is based in part on data supplied by the REALTOR Associations or Several MLS mergers are causing some data to be suspect. The Washington MLS me
gional Residential Real Estate Activity Current MLS Listings
Realtors)
Lisbon, etc.
or Assoc.)
hwest IL)
% of Active Listings
2015 Avg. Sales Price
2015 Sales Volume
2015 # Sold
% of Unit Sales
Sales/ List
2014 # Sold
2014 Avg. Sales Price
2014 Sales Volume
235
$121,600
$47,426,900
390
94%
441
$104,800
$46,231,800
2,172
$171,700
$615,239,500
3,583
98%
3,064
$163,200
$499,978,900
226
10%
170,600
48,801,700
286
8%
98%
265
160,400
42,492,900
285
13%
181,500
94,763,000
522
14%
98%
437
159,900
69,889,200
186
9%
154,700
53,383,300
345
10%
98%
315
140,600
44,288,700
169
8%
143,000
41,195,200
288
8%
99%
236
143,300
33,823,200
41
2%
250,600
18,040,200
72
2%
99%
65
246,700
16,037,100
226
10%
210,900
91,519,100
434
12%
98%
368
201,000
73,968,600
274
13%
167,800
59,228,000
353
10%
96%
293
146,300
42,852,400
274
13%
151,400
49,043,600
324
9%
97%
247
137,300
33,908,100
142
6%
292,600
64,656,700
221
6%
98%
187
270,400
50,566,600
349
16%
128,200
94,608,700
738
21%
99%
651
141,600
92,152,100
322
$92,100
$31,503,900
342
90%
351
$103,800
$36,444,300
37
$154,000
$14,783,400
96
91%
84
$151,700
$12,740,500
484
$171,400
$148,416,700
866
95%
874
$173,300
$151,479,500
317
65%
174,100
119,286,900
685
79%
95%
685
177,500
121,599,500
109
23%
160,900
20,912,800
130
15%
93%
132
153,400
20,249,400
41
8%
158,100
6,325,300
40
5%
93%
38
171,500
6,515,700
17
4%
172,000
1,891,700
11
1%
93%
19
163,900
3,115,000
$191,000
$20,627,800
108
90%
89
$192,600
$17,143,400
416
ors)
254
$84,600
$46,276,100
547
92%
496
$83,700
$41,515,200
.)
915
$119,500
$196,925,100
1,648
96%
1,488
$110,400
$164,299,600
171
19%
96,100
25,382,300
264
16%
96%
250
88,900
22,215,600
60
7%
133,900
16,463,900
123
7%
97%
111
128,000
14,210,700
191
21%
114,700
45,553,800
397
24%
96%
343
104,600
35,877,600
58
6%
152,700
14,506,400
95
6%
97%
57
130,100
7,414,400
96
10%
101,700
18,716,200
184
11%
96%
215
100,300
21,562,200
57
6%
175,200
13,494,100
77
5%
97%
56
181,400
10,159,800
63
7%
109,000
10,568,800
97
6%
95%
90
102,400
9,215,900
154
17%
125,300
40,973,500
327
20%
96%
289
116,000
33,527,600
65
7%
5%
96%
77
131,400
10,115,900
98%
1,710
$185,400
$317,032,400
806
ltors)
rs)
consin)
11,266,100
84
$335,119,500
1,749
444
55%
145,500
127,454,300
876
50%
97%
850
137,000
116,477,800
164
20%
313,700
123,294,200
393
23%
99%
378
305,100
115,330,100
29
4%
162,900
12,220,400
75
4%
98%
64
175,200
11,215,200
42
5%
224,100
20,165,200
90
5%
98%
92
230,600
21,216,600
24
3%
231,900
18,553,100
80
5%
98%
85
218,700
18,588,800
23
3%
110,300
4,742,900
43
2%
95%
55
100,400
5,521,500
80
10%
149,400
28,689,400
192
11%
98%
186
154,200
28,682,500
1,194
& QCARA)
134,100 $191,600
$216,600
$527,570,300
2,436
98%
2,155
$210,200
$452,916,700
268
22%
263,800
159,316,800
604
25%
98%
533
252,900
134,775,500
76
6%
294,300
43,847,300
149
6%
97%
155
299,200
46,379,200
138
12%
294,700
76,929,400
261
11%
98%
221
276,600
61,135,500
33
3%
165,300
8,266,000
50
2%
96%
56
157,200
8,804,300
32
3%
153,100
6,890,300
45
2%
97%
41
153,100
6,275,200
81
6%
168,800
21,777,400
129
5%
96%
117
162,300
18,985,500 20,573,700
70
6%
289,600
21,431,200
74
3%
97%
71
289,800
162
14%
182,000
62,066,700
341
14%
98%
239
161,500
38,605,500
334
28%
162,300
127,045,200
783
32%
99%
722
162,600
117,382,300
$116,100
$17,874,100
154
96%
113
$115,200
$13,020,100
108 182
$135,500
$61,242,500
452
96%
377
$125,100
$47,152,300
101
56%
134,900
42,096,100
312
69%
96%
249
131,100
32,650,200
8
4%
166,400
4,660,300
28
6%
96%
25
141,500
3,538,000
66
36%
122,600
11,521,800
94
21%
95%
81
102,500
8,305,100
7
4%
164,700
2,964,300
18
4%
101%
22
120,900
2,659,000
90
$110,900
$13,642,600
123
92%
118
$110,500
$13,041,100
350
$123,800
$44,075,500
356
89%
359
$126,300
$45,326,200
r their Multiple ListÂing Services. Neither the Boards nor their MLS guarantee or is in any way responsible for its accuracy. Data maintained by the Boards or their MLS may not reflect all real estate activity in the market. erged into the Iowa City MLS & data may be reflected in both markets. The Clinton MLS recently merged with the Quad Cities MLS. Maquoketa MLS members are merging with either the Quad Cities MLS or Dubuque MLS.
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 9/30/13
Active Inventory 9/30/14
Active Inventory 9/30/15
% Change in Inventory from 2014
Sales 2013
Sales 2014
Sales 2015
% Change in Sales from 2014
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
132 94 38 44 32 12 6 3 3 78 54 24 277 140 137 537
-18% -13% -28% -32% -30% -37% +20% +50% 0% -34% -29% -43% +5% -7% +20% -12%
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
239 143 96 49 44 5 5 4 1 183 136 47 316 181 135 792
-2% +2% -9% -26% -21% -50% -44% -33% -67% +8% -1% +47% -6% -6% -6% -4%
Land Values Decrease 11.3% in Iowa over Last Year 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 11.3% for the year from September 1, 2014 to September 1, 2015. This follows an average decrease of cropland values of 3.7% from March 2015 to September 2015 and a decrease of 7.6% reported in March 2015. All nine Iowa crop reporting districts showed a decrease in average farmland value ranging from 1.9% to 5.4% since March 2015. “There is a decrease in land values across the state,” said Eric Schlutz, ALC, Realtor and Manager of the Ruhl&Ruhl Part of Iowa
East Central
Realtors Muscatine Office. “The current decreases in value we are seeing are a direct reflection of the current commodity prices and net farm revenue; however, land remains a popular asset and is in high demand.” 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 the survey, participants are asked to estimate the average value of farmland as of September 1, 2015. These estimates are for bare, unimproved land with a sale price on a cash basis.
high quality crop land
medium quality crop land
$10,061/acre
$7,327/acre
low quality crop land
“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,” said Eric Schlutz. More information and discussion happened at Ruhl Farm&Land’s annual Land Seminar. Visit RuhlLand.com to learn more about Ruhl Farm&Land and to download the seminar presentation (click on “Resources/News”). Ruhl Farm&Land is a division of Ruhl&Ruhl Realtors, which is focused on the sale, purchase and marketing of land, farms and acreages. For more information, visit RuhlLand.com.
timber per acre VALUE % CHANGE
$4,642/acre $2,147 -3.2% per acre
Farm Land values in Dollars Per Acre for September 2015
A division of Ruhl&Ruhl Realtors
$5,000 Grants Available to Iowa Veterans Iowa veterans have an unique grant available to them if they purchase homes in the state of Iowa. The Military Homeownership Assistance Program (MHOA) provides eligible service members and veterans with a $5,000 grant for down payment and closing costs on a qualifying home purchase. Eligible service members may access the Military Homeownership Assistance Program to 6 • RuhlHomes.com
be used with a qualifying mortgage or cash purchase transaction. Ruhl Mortgage is proud to offer VA loans and the MHOA grant to our veterans. Ruhl&Ruhl Realtors are familiar with the program, and can work with a buyer to help find their perfect home. Eligible Homes • The home must be located in the state of Iowa and must be purchased by
the eligible service member. • The home must be immediately occupied by the service member/ spouse as the borrower’s primary residence. • Only Single-Family, Condominiums, or Townhome residences. • A property containing up to four units, if one of the units will be the primary residence of the service member.
New Housing Starts Through September
2012 2008
2013
2014
2015
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
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
26 13 13 459 236 133 72 18 195 54 1 3 19 9 109 66 10 9 0 2 1 9 16 2 17 290 55 115 53 30 33 4 297 98 17 104 64 2 8 4 28 9 18 1 31 9 10 11 1 1,392
Des Moines Area*
1,389
1,742
1,549
1,805
% Change 2014 vs. 2015 +63% +30% +117% +16% +4% +21% +57% +29% -20% -19% -86% +50% -10% -31% -19% -28% 0% -57% -100% -67% 0% -10% -45% 0% +42% +7% +20% -7% +23% +36% +38% -64% -8% -23% -29% -21% +94% -33% +100% +400% -15% -10% +13% -86% -23% -18% +11% -21% -83% -2% +17%
Source: Municipal offices. There may be additional new homes built which are not included with this data. *Des Moines Area is comprised of Adel, Altoona, Ankeny, Clive, Des Moines, Indianola, Johnston, Pleasant Hill, Polk City, Urbandale, Waukee, & West Des Moines.
Dip in 3rd Quarter New Construction Sales There is a year-to-date 4% decrease in unit sales. Although the first six months of the year had modest gains in new construction, there was an 11% decrease in sales during the third quarter of 2015 compared to the third quarter last year. As a result, there were 4% fewer houses and 3% fewer condos sold this year. At the same time, house inventory has dropped by 15% and condo inventory by 7%, contributing to a total of 12% fewer new home units available. Sales and inventory figures for regional markets are available on page 6. The price breakdown for new house and condo sales follows: Houses: Condos: Below $300K = 43% Below $200K = 58% $300-$400K = 35% $200-$300K = 36% Above $400K = 22% Above $300K = 6% Regionally, housing preferences were consistent with 64% of buyers choosing houses. Of those, 74% of buyers chose ranches and 19% of buyers chose 2-story houses. New home sales account for about 1 in every 10 home purchases YTD. With sales and inventory levels down across the region, some market segments are posting increases, as detailed on page 6. New home starts across the region are available on the chart to the left. Following is a brief summary of activity in each of the major market areas: CEDAR RAPIDS: While the Four Quadrants have experienced a 19% unit increase in sales YTD, the Marian/ Hiawatha/Robins segment has seen sales fall 21%. There is an overall area decrease of 2% in unit sales YTD. Overall inventory in the market is down 18% versus this time last year. DUBUQUE: This market continues to struggle in 2015 with sales and inventory levels for both houses and condos showing decreases versus 2014. Overall sales are down 26% and combined inventories are down 32%. The strength of this segment continues to be homes under $300,000. IOWA CITY: Overall sales in the area dropped by 6% while inventories have increased by 5%. The strongest segments have been house sales in North Liberty, which are up by 19%, and condo sales in Coralville/Tiffin, which have increased by 37%. The condo inventory in the area market is up 20% versus last year, while building in Tiffin has left that segment’s Dip in 3rd Quarter continued on page 8 RuhlHomes.com • 7
Corporate Relocation Center 5403 Victoria Avenue, Suite 100 Davenport, IA 52807 RETURN SERVICE REQUESTED
Dip in 3rd Quarter continued from page 7
inventory with a 69% increase. QUAD CITIES: An 11% jump in third quarter sales has helped the Quad Cities post the regions’ only major market increase at 6%. This increase was made possible by a 47% rise in Scott County condo sales. The overall inventory has
dropped by 32% versus the same time last year, with all of that loss coming in Scott County. New house pricing continues to be an impediment, with the average sale price in Scott County over $420K so far this year. The increasing number of pre-sold homes vs. spec homes may be an
indicator that the buying public has more economic confidence than lenders and builders at this time. Certainly, less inventory and fewer choices creates difficulty for buyers who need a home more quickly than the time it takes to build a custom home thereby reducing new home sales.
The Largest Privately-Owned Real Estate Company in Iowa! With its flexible and rewarding environment, a career in real estate could be for you!
Enjoy the comfort of a stable, successful company supporting you every step of the way.
The way to
a new Chris Beason Broker/Owner
RuhlHomes.com
career .
Since 1862
YOUR NAME REALTOR®
To see if a career in real estate is right for you, visit RuhlHomes.com/Careers or JoinTheRuhlTeam.com. Follow Us Online At:
For further information or to be added to our mailing list, contact Caroline Ruhl or Veronica Pianca • 563.355.7474 5403 Victoria Avenue, Suite 100 • Davenport, Iowa 52807-3925 • CarolineRuhl@RuhlHomes.com or VeronicaPianca@RuhlHomes.com 8 • RuhlHomes.com