Blue Skies continued from page 2
Regional New Construction Home Sales Through June 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 6/30/11
222 105 117 64 46 18 28 11 17 117 67 50 257 100 157 688
Active Inventory 6/30/12
182 114 68 69 46 23 22 5 17 88 44 44 137 96 41 498
Active Inventory 6/30/13
133 75 58 55 33 22 12 2 10 86 45 41 216 138 78 502
% Change in Inventory from 2012
Sales 2011
-27% -34% -15% -20% -28% -4% -45% -60% -41% -2% +2% -7% +58% +44% +90% +1%
164 118 46 20 20 0 16 9 7 87 55 32 161 73 88 448
Sales 2012
158 96 62 26 24 2 14 10 4 114 82 32 205 106 99 517
Illinois Quad Cities
Sales 2013
145 93 52 34 33 1 3 2 1 107 82 25 204 112 92 493
% Change in Sales from 2012
-8% -3% -16% +31% +38% -50% -79% -80% -75% -6% 0% -22% 0% +6% -7% -5%
Low Inventory Holding Back New Construction Sales Buyers are back and eager to purchase affordable new construction homes, and they want to buy now before costs go up further and interest rates increase. But bank regulations continue to severely limit builder financing, resulting in an inventory shortage in our region. Rising new construction costs have caused a noticeable change in new
house sales prices across the region. For several quarters, the pricing breakdown has put about 60% of sales below $300K, 25% between $300-400K and 15% over $400K. For the first half of 2013, the following figures apply: Below $300K = 44% $300-400K = 34% Above $400K = 22%
Despite rising costs and limited inventory, new construction sales still account for about 1 in every 12 house sales and 1 in every 5 condo sales across the region. Condo sales have fallen steadily from about 47% of sales mid-year in 2010 to about 35% this year. Condo inventory has also fallen from
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Home Prices Steadily Rising in our Local Markets Slow and steady wins the race! Our eastern Iowa markets continue to have steady and stable growth in home price appreciation. Nationally home prices have fallen 9.15% in the last five years, but all of our markets’ home prices are up: 7.01% in Dubuque; 1.95% in Iowa City; 1.48% in the Quad Cities; and 0.74% in Cedar Rapids. This compares to other cities: Des Moines, IA down 4.64%; Chicago, IL down 25.60%; and the Daytona Beach, FL area down 40.61%. Our markets didn’t fall as drastically as other areas of the country, so the increase in home price appreciation has been modest but steady. The shortage of listings and pent up buyer demand may further improve home prices locally. According to the Federal Housing Finance Agency, of the 300 MSAs (Metropolitan Statistical Areas) ranked by home price appreciation, all of our 6 • RuhlHomes.com
Metropolitan Statistical Areas (MSA’s)
Cedar Rapids, IA Davenport-MolineRock Island , IA-IL Des MoinesWest Des Moines, IA Dubuque, IA Iowa City, IA
2013 Appreciation Ranking of 300 MSA’s*
Percent Change in House Prices 1 Year 5 Year
173
+0.67%
+0.74%
140
+1.31%
+1.48%
146
+1.20%
-4.64%
98 106
+2.31% +1.96% +6.72%
+7.01% +1.95% -9.15%
USA
*Information courtesy of Federal Housing Finance Agency (FHFA) for first 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.
markets in eastern Iowa ranked in the top 58% in the nation – Dubuque at 98th; Iowa City at 106th; the Quad Cities at 140th; and Cedar Rapids at 173rd. Nationally, this is the seventh consecutive quarterly price rise and overall it’s believed the housing market has stabilized in many areas, but a
still-elevated foreclosure pipeline remains a hindrance to a bigger recovery, said FHFA Principal Economist Andrew Leventis. Our local markets continue to provide a much more stable environment for purchasing homes and investing in real estate.
Listing Inventory: The number of properties for sale in the Illinois Quad Cities is down 6%; from 949 listings last year to 893 listings currently on the market. Properties Sold: Through the second quarter of 2013, 4% more properties sold, comparing 840 sales through June last year to 874 sales through June this year. Average Sales Price: The average sales price had no statistical change, from $107,200 through June 2012 to $107,100 through June 2013. Residential Sales Volume: Sales volume increased 4% in the first half of 2013, from $90,021,500 to $93,575,200.
Iowa Quad Cities
Listing Inventory: There are 743 homes and condominiums listed for sale in the Iowa Quad Cities, 20% fewer than the same time last year when there were 934 properties for sale. Properties Sold: 16% more properties sold through the second quarter of 2013, an increase from 977 sales in the first half of 2012 to 1,140 sales in the first half of this year. Average Sales Price: The average sales price increased 2%; from $173,500 through June 2012 to $177,200 through June 2013. Residential Sales Volume: Sales volume went up 20% from $169,497,700 through the second quarter of 2012 to $201,995,200 through the second quarter of 2013. This follows a 21% increase in sales volume from the first half of 2011 to the first half of 2012.
Iowa City Area
Listing Inventory: The number of properties for sale in Iowa City is down 15%, a decrease from 1,554 in 2012 to 1,322 properties currently on the market.
Properties Sold: The number of properties sold increased 7% from 1,259 properties sold through the first half of 2012 to 1,343 sales closed through the first half of 2013. Average Sales Price: The average sales price increased 7%, from $193,700 in the first half of 2012 to $207,100 in the first half of 2013. Residential Sales Volume: Sales volume increased 14%, from $243,837,500 through June 2012 to $278,095,000 through June 2013.
Maquoketa, Preston & Bellevue
Listing Inventory: There are 100 properties for sale in the Maquoketa, Preston, and Bellevue area, 3% more than the same time last year when there were 97 properties listed for sale. Properties Sold: 51% more properties sold during the first half of 2013, an increase from 55 sales in 2012 to 83 sales in 2013. Average Sales Price: The average sales price of homes sold through June 2013 was $111,700, 16% more than the average sales price of $95,900 through June 2012. Residential Sales Volume: Sales volume grew 76%, from $5,276,400 in the first half of 2012 to $9,273,600 in the first half of 2013. This follows a 40% decrease in sales volume from the first half of 2011 to the first half of 2012.
Muscatine & Wilton Area
Listing Inventory: There are 224 homes and condominiums listed for sale in the Muscatine and Wilton area, 24% fewer than the same time last year when there were 295 properties for sale. Properties Sold: 6% more residential properties sold in the first half of 2013, comparing 229 sales last year to 243 sales in the first half of this year. Average Sales Price: The average sales price in the Muscatine area was $124,300, a 1% increase from the
average sales price in the first half of 2012 of $123,800. Residential Sales Volume: Sales volume was up 8%, an increase from $28,361,100 through June 2012 to $30,539,900 through June 2013.
Southwest Wisconsin
Listing Inventory: There are 438 properties for sale in the southwest Wisconsin region, a 2% increase in the number of properties for sale at the same time last year when there were 431 listings. Properties Sold: There was an 8% decrease in the number of residential properties sold in the first half of 2013, comparing 216 properties sold in 2012 to 199 properties sold this year. Average Sales Price: The average sales price was $110,300 during the first half of 2013, 11% lower than the $123,500 average sales price in the first half of 2012. Residential Sales Volume: Sales volume was down 18% through June 2013, a decrease from $26,671,300 through June 2012 to $21,958,700 through June 2013.
Washington Area
Listing Inventory: There are 100 properties for sale in Washington, Iowa and the surrounding area, a 22% decrease in the number of properties for sale at the same time last year when there were 129 listings. Properties Sold: There was a 4% increase in the number of residential properties sold through June 2013, comparing 68 properties sold in 2012 to 71 properties sold through the first half of this year. Average Sales Price: The average sales price was $86,400, 18% lower than the average sales price of $105,000 in the first half of 2012. Residential Sales Volume: Sales volume was down 14% through June 2013, a decrease from $7,140,400 through June 2012 to $6,133,100 through June 2013.
Combined Iowa & Illinois Quad Cities MLS Statistics Through June
2009
2010
2011
2012
2013
Current MLS Listings Average Sales Price Total Sales Volume Total # of Sales YTD
1,938 $137,200 $223,996,300 1,633
2,039 $136,400 $258,757,900 1,897
2,106 $132,600 $216,732,100 1,634
1,883 $142,800 $259,519,200 1,817
1,636 $146,800 $295,570,400 2,014
% Change 2012 vs. 2013 -13% +3% +14% +11%
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