Facts & Trends Real Estate
Ruhl&Ruhl REALTORS
Fall 2013
Market Pauses Due to Uncertainty
Beth Brockette Realtor, CRS, ABR, GRI, ASP, GREEN 319.551.8692 BethBrockette@RuhlHomes.com BrocketteHomes.com
IN THIS ISSUE: page 4
Ruhl&Ruhl Announced as an Iowa Top Workplace
page 4
Home Prices Rising in our Local Markets
page 6
Iowa Farmland Value Increased 10.6%
page 7
Demand Heats Up New Construction Sales
page 7
The Smarter Way to Buy and Sell
Real estate sales were brisk through summer in most of our markets (see activity chart on page 2), but the market has stalled this fall due to uncertainty. 1) Interest Rate Fluctuations – Interest rates have been trending upward since August. Historically when a recovery starts to drive up rates, buyers increase their buying activity to beat the rise in rates. We saw that this summer. But higher rates and tight credit requirements are also taking some buyers out of the market, or causing them to buy at a lower price point than they could have before. Ruhl&Ruhl Realtors is encouraging buyers to seize the moment – our interest rates are still at historically low levels and buyers will be able to afford more house at today’s rates than at higher rates next year. Plus, prices are going up – so waiting will cause pain. 2) Buyer Confidence Eroded by Threats of Loan Default and Government Shutdown – All the negative “sky is falling” media is causing an erosion of buyer confidence. Despite the improving employment and economy, buyers are more cautious and moving more slowly. 3) Listing Shortages in “Affordable” Price Ranges – While “affordable” varies by market, we need more listings in the median to lower price ranges, typically under $150,000. There are also shortages in pockets of upper price ranges based on neighborhood, school district, and other niches that your Realtor can share with you. There is also a dearth of new construction spec home inventory. Builders still struggle to get financing on more than one spec at a time. This is holding back our new construction sales.
4) Months of Inventory – Months of inventory is lowest in the Iowa Quad Cities with 3.5 months; Burlington with 5.2 months; and DeWitt with 5.6 months. The lower the months of inventory the stronger the market is and the better for sellers.
Months of Inventory
Balanced Sellers Market Market
Buyers Market
0 1 2 3 4 5 6 7 8 9 10 Burlington
15
5.2
Cedar Rapids
6.7
Clinton
8.5
DeWitt
5.6
Dubuque
7.9
Galena
19
Illinois QCA Iowa QCA Iowa City
6.5 3.7 7.1
Maquoketa Muscatine SW Wisconsin Washington
20
8.3 6.1 10.1 11.3
5) The Good News – The good news is that prices are going up and interest rates are still at historically low levels: 4.33% for a 30-year fixed rate and 3.42% for a 15-year fixed rate, as of October 11. Buyers’ purchasing power is still much stronger today than at next year’s forecasted rate of 5.3%, allowing them to buy a more expensive home now than they will be able to afford next year for the same monthly payment. We expect prices to continue to increase as buyer confidence improves once the government gets back to work and does its job. At the end of 2013, sales results will be just a little ahead of 2012, which was a great year in our region. RuhlHomes.com • 1
2013 Regional Real Estate Activity Chart Through September
Average 2013 Sales Price
% Change in Average Sales Price from 2012
$112,700 $168,700 $100,800 $149,700 $160,000 $176,800 $107,000 $178,300 $205,800 $110,900 $130,100 $110,200 $88,500
+8% +7% -1% +3% -1% +4% -3% +1% +6% +10% +4% -9% -14%
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
2013 Number Sold
440 3,171 334 77 776 91 1,453 1,808 2,294 126 392 343 106
% Change in Number Sold from 2012
+12% +11% -7% -11% -4% -12% +6% +11% +10% +38% +6% +2% -3%
2013 Sales Volume
$49,609,700 $535,086,100 $33,683,100 $11,525,900 $124,197,000 $16,088,000 $155,414,900 $322,430,200 $472,066,700 $13,978,700 $50,990,500 $37,763,800 $9,383,100
% Change in Sales Volume from 2012
+21% +19% -8% -9% -5% -9% +3% +12% +16% +52% +10% -7% -15%
Active Listing Count 2013
286 2,002 319 48 560 393 1,049 797 1,234 116 264 459 117
% Change in Active Listings from 2012
-3% -6% -9% +23% -17% +1% +4% -4% -6% +35% -5% +14% -1%
Months of Inventory
5.2 6.7 8.5 5.6 7.9 19.0 6.5 3.7 7.1 8.3 6.1 10.1 11.3
Summary of Regional Real Estate Activity Burlington Area
Listing Inventory: There are 286 properties for sale in Burlington, Iowa and the surrounding area; a 3% decrease from the same time in 2012 when there were 295 properties listed for sale. Properties Sold: There was a 12% increase in the number of properties sold through the third quarter of 2013, comparing 394 sales through September 2012 to 440 sales through September 2013. Average Sales Price: The average sales price was $112,700, 8% more than the $104,400 average sales price through September 2012. Residential Sales Volume: Sales volume was up 21% in the area, an increase from $41,129,600 through third quarter of 2012 to $49,609,700 through third quarter of 2013.
Cedar Rapids Area
Listing Inventory: There are 2,002 residential properties for sale in the Cedar Rapids area; 6% less than the same time last year when there were 2,119 properties listed. Properties Sold: Through September this year, 3,171 properties sold and closed, 11% more than the 2,853 that were sold through September 2012. Average Sales Price: The average sales price was $168,700 through September 2013, 7% more than the average sales price of $157,000 through September 2012. 2 • RuhlHomes.com
Residential Sales Volume: Sales volume increased 19%, from $447,964,000 through September 2012 to $535,086,100 through September 2013.
Clinton, Camanche & Fulton
Listing Inventory: There are 319 properties for sale in the Clinton, Camanche and Fulton area; 9% fewer than the same time last year when there were 349 listings for sale. Properties Sold: 7% less properties sold and closed through the third quarter of 2013, a decrease from 359 sales in 2012 to 334 sales in 2013. Average Sales Price: The average sales price through September 2013 was $100,800, a 1% decrease from the average sales price of $101,500 through September 2012. Residential Sales Volume: Sales volume decreased 7%, from $36,447,000 through the third quarter of 2012 to $33,683,100 through the third quarter of this year.
DeWitt
Listing Inventory: DeWitt’s listing inventory up 23%, from 39 properties for sale last year to 48 properties currently for sale. Properties Sold: 77 properties sold through the third quarter of 2013, 11% fewer than last year when 87 properties sold. Average Sales Price: The average sales price of homes sold through September 2013 was $149,700, 3%
more than last year when the average sales price was $145,500. Residential Sales Volume: Sales volume decreased 9%, from $12,656,200 through September 2012 to $11,525,900 through September 2013.
Dubuque Area
Listing Inventory: There are 560 residential properties for sale in the Dubuque area; a 17% decrease from the same time last year when there were 671 properties for sale. Properties Sold: 4% fewer properties sold through the third quarter of 2013, a decrease from 807 closings through September 2012 to 776 closings through September 2013. Average Sales Price: The average sales price of homes sold through September 2013 was $160,000, 1% less than last year’s average sales price of $162,200. Residential Sales Volume: Sales volume through the third quarter of 2013 was $124,197,000, down 5% from $130,901,000 through the third quarter of 2012. This follows a 17% increase from 2011 to 2012.
Galena & Surrounding Area
Listing Inventory: There are 393 properties for sale in Galena, Illinois and the surrounding area; 1% more than the same time last year when there was 389 properties listed for sale. Properties Sold: There was a 12% decrease in the number of residential Summary continued on page 3
Summary continued from page 2
Illinois Quad Cities
Listing Inventory: The number of properties for sale is up 4% from the same time last year in the Illinois Quad Cities; an increase from 1,012 listings to 1,049 listings currently for sale. Properties Sold: Through the third quarter of 2013, there was a 6% increase in the number of properties sold, comparing 1,374 sales to 1,453 sales through September 2013. Average Sales Price: The average sales price decreased 3%, from $109,900 through September 2012 to $107,000 through September 2013. Residential Sales Volume: Sales volume increased 3%, from $151,064,700 through the third quarter of 2012 to $155,414,900 through the third quarter of 2013.
Listing Inventory
Properties Sold
$151,064,700
$155,414,900
2012 2013
$107,000
2012 2013 $109,900
2013
1,453
1,374
1,012
2012 2013
2012
1,049
Illinois Quad Cities
Average Residential Sales Price Sales Volume
Iowa Quad Cities
Listing Inventory: There are 797 properties for sale in the Iowa Quad Cities, a 4% decrease from the same time last year when there were 830 properties for sale. Properties Sold: 11% more properties sold through the third quarter of 2013, an increase from 1,635 sales in 2012 to 1,808 sales in 2013. Average Sales Price: The average sales price increased 1%, from $176,100 through September 2012 to $178,300 through September 2013. Residential Sales Volume: Sales volume increased 12%, from $287,897,500 through the third quarter
of 2012 to $322,430,200 through the third quarter of 2013.
Listing Inventory
Properties Sold
2012 $287,897,500
2013 $322,430,200
2012 2013 $176,100
2013
1,808
2012
1,635
797
2012 2013
$178,300
Iowa Quad Cities
830
properties sold through the third quarter of 2013, comparing 103 sales in 2012 to 91 sales through September of this year. Average Sales Price: The average sales price was $176,800 through September 2013, 4% more than the $170,800 average sales price through September 2012. Residential Sales Volume: Sales volume was down 9% in the area, a decrease from $17,587,500 to $16,088,000 through September 2013.
Average Residential Sales Price Sales Volume
Iowa City Area
Listing Inventory: The number of properties for sale in Iowa City decreased 6%; from 1,314 in 2012 to 1,234 homes and condominiums currently for sale. Properties Sold: Sales have increased 10% from 2,085 properties sold through the third quarter of 2012 to 2,294 properties sold through the third quarter of 2013. Average Sales Price: The average sales price is up 6%, from $194,600 through the third quarter of 2012 to $205,800 through the third quarter of 2013. Residential Sales Volume: Sales volume was $472,066,700 through September 2013, a 16% increase from last year when it was $405,727,400.
Maquoketa, Preston & Bellevue
Listing Inventory: There are 116 properties for sale in the Maquoketa, Preston, and Bellevue area, 35% more than the 86 properties listed for sale at the same time in 2012. Properties Sold: 38% more properties sold; an increase from 91 sales through the third quarter of 2012 to 126 sales through the third quarter of 2013. This follows a 26% decrease from 2011 to 2012. Average Sales Price: The average sales price through September 2013 was $110,900, 10% more than the average sales price through September 2012 of $101,100. Residential Sales Volume: Sales volume was up 52%, from $9,197,800 through the third quarter of 2012 to $13,978,700 through the third quarter of 2013.
Muscatine & Wilton Area
Listing Inventory: There are 264 homes and condominiums listed for
sale in the Muscatine and Wilton area, 5% less than the same time last year when there were 277 properties for sale. Properties Sold: There were 6% more residential properties sold through the third quarter of 2013, comparing 369 sales last year to 392 sales through September 2013. Average Sales Price: The average sales price through September 2013 was $130,100, 4% more than the $125,500 average sales price through September 2012. Residential Sales Volume: Sales volume was up 10%, an increase from $46,532,300 through September 2012 to $50,990,500 through September 2013.
Southwest Wisconsin
Listing Inventory: There are 459 properties for sale in the southwest Wisconsin region, a 14% increase from the same time last year when there were 404 listings. Properties Sold: There was a 2% increase in the number of residential properties sold through the third quarter of 2013, comparing 335 sales in 2012 to 343 sales in 2013. Average Sales Price: The average sales price through third quarter of 2013 was $110,200, 9% less than the $121,700 average sales price through third quarter of 2012. Residential Sales Volume: Sales volume was down 7%, a decrease from $40,758,800 through the third quarter of 2012 to $37,763,800 through the third quarter of 2013.
Washington Area
Listing Inventory: There are 117 properties for sale in Washington, Iowa and the surrounding area, down 1% from the same time last year when there were 116 properties for sale. Properties Sold: Through the third quarter of 2013, 3% fewer properties sold, comparing 109 sales through September 2012 to 106 sales through September 2013. Average Sales Price: The average sales price decreased 14%, from $103,400 through September 2012 to $88,500 through September 2013. Residential Sales Volume: Sales volume was down 15%, from $11,068,000 through September 2012 to $9,383,100 through September 2013. This follows a 30% increase from 2011 to 2012. RuhlHomes.com • 3
Ruhl&Ruhl Announced as an Iowa Top Workplace
Region
Ruhl&Ruhl Realtors has been said in their survey: selected as one of the 2013 “Iowa Top “They continually offer cutting-edge Workplaces,” a list of the best places to technology; they always request input work in the state of Iowa. from the agents on what we need and The evaluation for the Top Workplaces what they can do to help us do our jobs program is based upon feedback from an better. Management’s doors are always employee survey. Ruhl&Ruhl had over open to discussing new ideas and 226 responders, which helped to rank knowledge is always shared.” the company as the 15th top mid-sized “The education and morality of the workplace in Iowa. company [impresses me most]. They try “We are delighted to receive this to give their agents as much training as award,” said Caroline Ruhl, President of possible so they can become better.” Ruhl&Ruhl Realtors. “It showcases our “I love the people I work with and can commitment to our agents and always get help when needed. employees, and confirms that at Additionally, it really makes me “They try to give Ruhl&Ruhl, our people really are feel good to help clients find their their agents as much training as the difference.” dream home and/or sell their possible so they can existing home.” There were 116 companies become better.” selected for the Top Workplaces “It affords me the award. Ruhl&Ruhl was one of opportunity to make a good living only three real estate companies in the in a happy and friendly environment.” state selected, and the only real estate “The work is interesting, challenging, company headquartered in eastern Iowa. and never boring! Co-workers are great! I This is the second time Ruhl&Ruhl am also given the opportunity to balance received recognition for being an “Iowa my home life with my hours at work.” Top Workplace”. To view a list of all recipients, go to This is what some of the employees www.desmoinesregister.com.
Home Prices Rising in our Local Markets Our eastern Iowa markets continue to have steady and stable growth in home price appreciation. Nationally home prices have fallen 4.35% in the last five years, but all of our markets’ home prices are up: 6.97% in Dubuque; 3.92% in Iowa City; 1.83% in Cedar Rapids; and 1.20% in the Quad Cities. This compares to Des Moines, IA down 2.51% and Chicago, IL down 22.95%. In our markets, home prices didn’t have as drastic as a fall compared to other areas of the country, so the increase in home price appreciation has been modest but steady. A continued shortage of listings and low, but rising interest rates may impact home prices locally. Metropolitan Statistical Areas (MSA’s)
Cedar Rapids, IA Davenport-MolineRock Island , IA-IL Des MoinesWest Des Moines, IA Dubuque, IA Iowa City, IA USA
According to the Federal Housing Finance Agency, of the 401 MSAs (Metropolitan Statistical Areas) ranked by home price appreciation, all of our markets ranked in the top 54% in the nation – Iowa City at 102nd; Dubuque at 162nd; the Quad Cities at 189th; and Cedar Rapids at 216th. Nationally, this is the eighth consecutive quarterly price rise and overall the housing market experienced one of its strongest quarters since the boom in the middle of the last decade, said Andrew Leventis, FHFA Principal Economist. Our local markets continue to provide a more stable environment for purchasing homes and investing in real estate.
2013 2nd Quarter National Ranking of 401 MSA’s*
Percent Change in House Prices 1 Year 5 Year
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, Li West of I-380: Walford, Fairfax, Atkins, etc. Corridor Area: Solon, Ely, Swisher Condominiums
Clinton, Camanche & Fulton (Clinton Board of Real 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 Nort
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
216
+1.04%
+1.38%
Condominiums Maquoketa, Preston & Bellevue (Jackson County M
189
+1.41%
+1.20%
Muscatine & Wilton Area (Muscatine Board of Realt
143
+2.27%
-2.51%
Wilton
162 102
+1.79% +3.37% +7.22%
+6.97% +3.92% -4.35%
Condominiums
Information courtesy of Federal Housing Finance Agency (FHFA) for second quarter 2013. 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
Through September
Muscatine Muscatine Outlying 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
nal Residential Real Estate Activity Chart Current MLS Listings
Realtors)
isbon, etc.
ltors)
thwest IL)
.)
% of Active Listings
2013 Avg. Sales Price
2013 Sales Volume
2013 # Sold
% of Unit Sales
Sales/ List
2012 # Sold
2012 Avg. Sales Price
2012 Sales Volume
286
$112,700
$49,609,700
440
95%
394
$104,400
$41,129,600
2,002
$168,700
$535,086,100
3,171
98%
2,853
$157,000
$447,964,000
200
10%
158,500
41,367,100
261
8%
96%
221
141,700
31,317,600
302
14%
174,200
80,299,300
461
14%
97%
418
161,400
67,481,900
170
8%
143,100
39,936,800
279
8%
98%
261
133,600
34,864,200
141
7%
137,200
31,693,300
231
7%
98%
234
126,500
29,605,300
38
2%
256,900
20,810,100
81
2%
98%
70
229,600
16,070,100
206
10%
197,600
77,869,200
394
12%
99%
344
185,300
63,757,600
242
12%
152,500
51,408,800
337
10%
97%
360
162,000
58,316,700
199
10%
149,800
34,011,400
227
7%
97%
259
139,400
36,094,100
133
6%
273,100
57,078,400
209
6%
98%
123
252,800
31,093,100
371
21%
145,600
100,611,700
691
26%
99%
563
141,000
79,363,400
$101,500
$36,447,000
319
$100,800
$33,683,100
334
94%
359
48
$149,700
$11,525,900
77
94%
87
$145,500
$12,656,200
560
$160,000
$124,197,000
776
95%
807
$162,200
$130,901,000
378
68%
164,100
98,435,400
600
77%
95%
609
162,000
98,680,400
119
21%
149,300
19,820,500
133
17%
94%
157
166,800
26,188,800
44
8%
122,800
2,701,500
22
3%
92%
26
136,100
3,537,300
19
3%
152,800
3,209,600
21
3%
91%
15
166,300
2,494,400
$176,800
$16,088,000
91
82%
103
$170,800
$17,587,500
393 1,049
$107,000
$155,414,900
1,453
95%
1,374
$109,900
$151,064,700
179
17%
87,200
22,942,000
263
18%
96%
239
89,000
21,271,700
75
7%
116,100
13,468,200
116
8%
95%
101
135,200
13,652,800
200
20%
101,100
34,371,600
340
23%
95%
326
103,400
33,708,300
36
3%
142,500
8,407,600
59
4%
96%
52
168,800
8,775,100
140
13%
95,000
15,582,700
164
11%
95%
168
97,400
16,364,600
56
5%
161,500
10,658,500
66
5%
96%
47
172,000
8,085,600
74
7%
108,100
9,408,600
87
6%
95%
79
98,400
7,777,500
216
21%
110,300
29,443,700
267
19%
94%
266
116,000
30,843,600
73
7%
6%
96%
96
110,300
10,585,500
97%
1,635
$176,100
$287,897,500
97%
821
130,400
107,053,600
275,800
100,934,300
797 389
49%
122,300
11,132,000
91
$178,300
$322,430,200
1,808
140,200
132,532,800
945
52%
126
16%
283,400
98,619,100
348
19%
98%
366
41
5%
175,400
13,854,100
79
4%
96%
60
166,300
9,976,000
48
6%
238,000
19,994,600
84
5%
98%
66
268,400
17,716,100
38
5%
213,500
19,214,100
90
5%
98%
81
213,200
17,269,200
50
6%
109,000
5,557,000
51
3%
94%
41
101,400
4,158,000
105
13%
154,800
32,658,500
211
12%
98%
200
154,000
30,790,300
1,234
$205,800
$472,066,700
2,294
98%
2,085
$194,600
$405,727,400
227
18%
256,300
144,304,400
563
25%
98%
499
238,900
119,217,600
75
6%
299,000
51,122,500
171
7%
98%
143
285,300
40,801,300
109
9%
272,700
63,807,300
234
10%
99%
222
248,900
55,249,800
54
4%
155,300
8,076,100
52
2%
97%
48
148,800
7,140,200
24
2%
153,500
5,833,000
38
2%
95%
40
144,600
5,782,300
80
6%
152,600
17,543,300
115
5%
96%
108
154,200
16,653,400 19,787,900
65
5%
292,000
24,531,300
84
4%
96%
76
260,400
245
20%
153,300
40,022,900
261
11%
96%
256
143,600
36,762,300
30%
150,500 $110,900
116,825,900 $13,978,700
776 126
34%
MLS)
355 116
99% 94%
693 91
150,600 $101,100
104,332,600 $9,197,800
tors)
264
consin)
$130,100
$50,990,500
392
95%
369
$125,500
$46,532,300
168
64%
128,700
35,004,000
272
69%
95%
249
119,500
29,764,000
16
6%
124,700
4,114,500
33
8%
95%
28
107,800
3,019,500
19%
95%
75
152,000
11,399,800
4%
96%
17
138,200
2,349,000
69
26%
132,800
9,695,000
73
11
4%
155,500
2,177,000
14
117
$88,500
$9,383,100
106
90%
109
$103,400
$11,068,000
459
$110,200
$37,763,800
343
90%
335
$121,700
$40,758,800
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 9/30/11
217 126 91 69 51 18 31 13 18 108 57 51 251 97 154 676
Active Inventory 9/30/12
183 113 70 64 54 10 23 4 19 80 42 38 197 104 93 547
Active Inventory 9/30/13
156 94 62 54 32 22 14 5 9 94 53 41 221 121 100 539
% Change in Inventory from 2012
Sales 2011
-15% -17% -11% -16% -41% +120% -39% +25% -53% +18% +26% +8% +12% +16% +8% -1%
247 171 76 35 35 0 16 9 7 151 100 51 264 123 141 713
Sales 2012
246 148 98 34 31 3 16 11 5 181 130 51 344 176 168 821
Sales 2013
252 158 94 53 52 1 6 4 2 176 139 37 361 191 170 848
% Change in Sales from 2012
+2% +7% -4% +56% +68% -67% -63% -64% -60% -3% +7% -27% +5% +9% +1% +3%
Iowa Farmland Value Increased 10.6% The value of cropland across the state of Iowa continues to be on the rise, but slowing a bit. The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average increase of cropland values of 10.6% for the year from September 1, 2012 to September 1, 2013. This follows an average increase of 18.5% for the year from September 2011 to September 2012; and an average increase of 32.6% for the year from September 2010 to September 2011. Overall, the strong upward movement in land prices has leveled out even though we have seen growth in values over the past six months especially in the East Central District, which covers much of the local market area. “Clearly the decrease in commodity prices and the potential for highly variable yields are slowing the increases in land value especially in medium to lower quality farms,” said Eric Schlutz, Realtor with Ruhl Farm&Land and Muscatine
Manager for Ruhl&Ruhl Realtors. The survey also attributed the current land values to an increase in long-term interest rates, 2013 growing conditions, a lack of stable alternative investments, large amounts of cash on hand and the limited amount of land on the market. For the survey, participants are asked to estimate the average value of farmland as of September 1, 2013. 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. Seven of the nine Iowa crop reporting districts showed an increase in the last 6 months. For local experts, the survey results were not surprising, said Dennis Stolk, Realtor with Ruhl&Ruhl Realtors. “The best strength in the land market continues to be in the high quality, all tillable parcels, with some easing of the growth in values of the lesser quality parcels, as well as recreation land,” Stolk said. “Future direction of land values will
be highly dependent on commodity prices for corn, soybeans, hogs and cattle, as well as interest rates and the general overall economic trend. “We are positioned in eastern Iowa and western Illinois to see good stable land values and do not anticipate a drastic movement downward or upward.”
A division of Ruhl&Ruhl REALTORS
To see land values in dollars per acre for various parts of the state and by quality of cropland, please go to
RuhlHomes.com/RuhlLand.
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
2009
2010
2011
2012
2013
1,936 $139,400 $383,565,000 2,751
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
% Change 2012 vs. 2013 0% 0% +9% +8%
New Housing Starts
The way to
For details of each region, visit www.RuhlHomes.com/Trends.
Through September Burlington Area* Cedar Rapids Area Dubuque Area Illinois Quad Cities Iowa Quad Cities Iowa City Area Muscatine Area Other Areas Total Regional Starts Des Moines Area**
2010 2008
2011
2012
2013
% Change 2012 vs. 2013
N/A 430 264 110 273 227 26 30 1,360
3 433 241 106 256 276 17 20 1,352
15 377 286 101 325 354 27 22 1,507
17 402 282 104 618 303 23 23 1,772
+13% +7% -1% +3% +90% -14% -15% +5% +18%
N/A
N/A
1,389
1,742
+25%
Source: Municipal offices. There may be additional new homes built which are not included with this data. *Burlington Area, 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.
Demand Heats Up New Construction Sales Despite rising costs of land and construction, the threat of higher interest rates, tighter lending regulations and shorter supply – our regional new construction market showed signs of life during the 3rd quarter. In fact, MLS reported unit sales of new homes stood at 848 or 3% ahead of the end of the 3rd quarter in 2012 across the region. Regional overall inventory totals were 539 or 1% down from the same time last year and 27% down from 2010. (See new construction chart on page 6 for details.) The 3rd quarter showed a continued trend toward more affordable price points for new house purchases. Through the end of the 3rd quarter, the 2013 price breakdown is as follows: Below $300,000 = 54% $300,000 - $400,000 = 29% Above $400,000 = 17% We should also note that 73% of new condo purchases in 2013 have fallen below $200K and 96% below $300K. House buyers continue to show a preference for ranches, reflected as 77% of 2013 sales and 81% of current inventory. These sales represent an increase from 69% in 2010. One and a half story homes experienced the steepest decline in sales in recent years, representing only 1% of 2013 regional sales. New home buyers also continued to prefer houses over condos, as houses accounted for 64% of new purchases, up from 56% in 2010. House sales are up 10%, when compared with the same time last year, while condo sales are down 7% across the region. New homes now represent about 1 in every 10 home purchases in this market, with 1 in 7
considered “normal” nationally. As shown in the Regional New Construction Home Sales Chart on page 6, the Iowa City area continues to lead regional activity with 361 sales, followed by Cedar Rapids with 252 sales and the Iowa Quad Cities with 176 sales. Iowa City also enjoys the best overall existing home to new home sales ratio at 4.9 to 1. New housing starts are detailed, by market, on the chart on page 6. Following is a brief summary of activity in each of the major market areas: CEDAR RAPIDS: Year-to-date sales are up 2% overall, with new house sales growing 7%, as condo sales fell 4%. There has been a 7% increase in new housing starts this year. Sales growth in this market has been fueled by sales above $350K. However, inventory is down 15%. DUBUQUE: An increase in overall unit sales of 56% was led by a 68% climb in house sales. 98% of house sales closed below $400K. New condo sales remain nearly nonexistent, with 1 sale reported in the MLS for 2013. No significant increase in new housing starts and dramatically increased house sales has resulted in a 16% decrease in available inventory over 2012. IOWA CITY: The only area to see increases in both house and condo sales also reported increases in both house and condo inventory. Overall sales were up 5% at 361 units, while overall inventory was up 12% to 221 units. North Liberty, typically supplying about 50% of this market’s sales, had a 42% decrease in new starts this year. The lack of new house inventory below $200K, while present across the region, is especially noteworthy in this market.
Demand Heats Up continued on page 8
buy sell and
.
Prudential Real Estate released results of their Consumer Outlook Survey, with the following findings: 1) Confidence in real estate and home values jumped sharply, reaching 83% vs. 73% at year-end 2012. 2) There is confusion about interest rate trends. Anxiety and fear of losing a real estate opportunity are respondents’ main emotional challenges. 3) The knowledge gap calls for advice and guidance from real estate professionals to help people make the best choices. Americans who are looking to purchase or sell a home remain positive about their prospects. They’re looking to the guidance of quality real estate agents to navigate the entire process. Homebuyers are more informed than ever with their internet searches and ongoing research; however there’s a critical need to transform that information into analysis and advice that helps consumers make the best home buying and selling decisions.
Visit RuhlHomes.com: Gain a better understanding of your neighborhood by seeing what local homes recently sold for on RuhlHomes.com. Simply register for Ruhl Premier Access by visiting RuhlHomes.com and clicking "Register" in the top right corner. Search ALL available homes for sale in eastern Iowa, western Illinois and southwest Wisconsin. Make more effective decisions on the right home to buy with real estate trends and statistics at your fingertips. See trends at RuhlHomes.com/Trends or view statistics on each listing by clicking the Market Report tab.
Download mobileRuhl: Easily search ALL homes for sale by all companies on your mobile phone or tablet. Download the app for Android, iPad and iPhone in your app store. Save time by searching only the neighborhoods you are interested in with the draw function. Draw any shape to find properties in that specific area. Even save that search area to pull up later! Get a quick peek of a property for sale by pulling it up as you drive by. See full screen photos, price, bedrooms and bathrooms and even tax information. Even on the go, you have all real estate information at your fingertips!
Contact a Ruhl&Ruhl Realtor: Become more informed by talking to a Ruhl&Ruhl agent, who can answer your questions and guide you through the process of home buying or selling. Contact your Ruhl&Ruhl agent directly or call 1.866.441.1776 to be connected with the best Realtor for your needs.
RuhlHomes.com • 7
Corporate Relocation Center 5403 Victoria Avenue, Suite 100 Davenport, IA 52807 ADDRESS SERVICE REQUESTED
Demand Heats Up continued from page 7
QUAD CITIES: New home sales in the market are down 8% from 2012. MLS reports for Scott County sales reveal a 3% decline, while Rock Island County sales are down 63% from last year. In Scott County, house sales were up 7% as condo
sales dipped 27%. Rock Island County had a 60% decrease in condo sales and a 64% decrease in house sales. Scott County has seen a dramatic upturn in new permits, which should eventually result in an even larger jump in inventory from the 18% increase reported to date. Rock
Island County has seen inventory dwindle by 39%, hampered by a decline of 53% in available new condos. New starts have leveled off, indicating that it is unlikely we will see any real surge in inventory. The Quad Cities market has experienced 1 new sale in every 10 home sales this year.
The Largest Privately-Owned Real Estate Company in Iowa!
RUHL MORTGAGE BECOMES OFFICIAL We provide a smarter way to find a mortgage with Ruhl Mortgage! Make the best financial decision by talking to a Ruhl Mortgage loan officer to learn about your various options. Stick to your planned schedule by closing on time with Ruhl Mortgage.
Beth Brockette Realtor, CRS, ABR, GRI, ASP, GREEN 319.551.8692 BethBrockette@RuhlHomes.com BrocketteHomes.com
Ruhl Mortgage, formerly Shelter and 1862 Mortgage, provides hundreds of loan types for purchasing or refinancing your home. And because Ruhl Mortgage is Ruhl&Ruhl’s financing partner, they will keep your agent updated on all Information provided should not be considered as a commitment to lend. Please aspects of your home loan, helping to ensure contact your Loan Consultant for further details. 1701 52nd Avenue, Moline, IL 61265. Illinois Residential Mortgage Licensee. ©2013 Ruhl Mortgage. NMLS # 935629. a smooth real estate transaction.
RuhlHomes.com/Mortgages • 866.441.1862 Check Us Out 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
EQUAL HOUSING
LENDER