Page 1

Facts & Trends Real Estate

Ruhl&Ruhl Realtors

Fall 2017

Seller’s Market in Affordable Homes Buyer’s Market in Luxury Homes

Connie Coster & Miranda Mendoza

Realtors Bettendorf Office (309) 292-1881 • (309) 644-0485 ConnieCoster@RuhlHomes.com ConnieCoster.RuhlHomes.com MirandaMendoza@RuhlHomes.com MirandaMendoza.RuhlHomes.com

IN THIS ISSUE: page­ 3

Why a Pre-Inspection Saves You Time and Money

page­ 4

Tight Inventory Causes Increases in Home Price Appreciation

page­ 6

Iowa Cropland Values Up in Last Year

page­ 7

Condo Sales Prop Up Slow 3rd Quarter New Homes Market

Home sales slowed down in July and August in our region, but picked up again in September. Year to date through September sales volume is up 8% across all markets based on a 5% increase in average sales prices and a 2% increase in number of properties sold. See our Regional Activity chart on page 2 for a market by market comparison, including months of inventory by market.

Bifurcated Market

We continue to have a bifurcated market with strong demand for a low inventory of affordable homes for sale, but low demand for the abundant inventory of expensive homes for sale. Recall that fewer than 4 months of inventory is a seller’s market, 4-6 months is balanced, and greater than 6 months of inventory is a buyer’s market. Below is a sample of our markets: Months of Inventory Cedar Rapids Area Below $350,000 3.1 months Above $350,000 10.0 months Dubuque Area Below $350,000 3.3 months Above $350,000 9.9 months Illinois Quad Cities Below $300,000 5.1 months Above $300,000 7.5 months Iowa Quad Cities Below $450,000 2.8 months Above $450,000 5.8 months Iowa City Area Below $350,000 4.6 months Above $350,000 13.8 months So the market is still very active in our affordable price ranges and we need more inventory, but it is slower in the upper price ranges and is generally a buyer’s market. This means the timing is perfect for sellers in affordable homes to sell and to buy that

nicer home they always wanted.

Sales Projections Strong for 2018 and Steady for Balance of 2017

Single family home sales in 2018 are projected to be higher than 2017 by Freddie Mac, Fannie Mae and Mortgage Bankers Association (MBA). This can be attributed to: 1. Buyer and Seller Confidence: Confidence in housing again set an alltime high in September in the Fannie Mae Home Purchase Sentiment Index (HPSI). “Details in the survey showed a meaningful pickup in the good time to buy component, especially from the renter respondents,” noted Doug Duncan, chief economist at Fannie Mae. The share of sellers who believe now is a good time to sell also rose. 2. Interest Rates Still Low: On October 10, mortgage interest rates with zero points were: 15-Year Conventional Fixed............3.250% 30-Year Conventional Fixed............3.875% FHA/VA 30-year Fixed....................3.750% 5/1 ARM (Adjustable Rate Mortgage).....3.500% Projections by Fannie Mae, MBA and NAR average: 4.03% for fourth quarter 2017, 4.20% for first quarter 2018 and 4.37% for second quarter 2018. 3. Homes Continuing to Appreciate: Appreciation in home values follows inventory and demand. The chart on page 4 shows appreciation in our various markets over the past 12 months ranging from 2.78% in Cedar Rapids to 3.64% in the Quad Cities and Dubuque. Note that this is the average for all properties sold. Less expensive homes are appreciating more due to strong demand and low inventory, while expensive homes are appreciating less due to excess inventory and low demand.


Summary continued from page 2

sales price was $186,000 through September 2017, 4% more than last year when the average sales price was $179,700. Residential Sales Volume: Sales volume was up 5% for the first three quarters of 2017, an increase from $26,054,400 through September 2016 to $27,340,800 through September 2017.

Galesburg Area

Listing Inventory: There are 238 properties currently listed for sale. This is the first year we are tracking the two county area. Properties Sold: Sales have increased 7% from 405 properties sold through the third quarter of 2016 to 434 through September 2017. Average Sales Price: The average sales price was $91,100 through September 2016, 9% more than the average sales price of $99,100 through September 2017. Residential Sales Volume: Sales volume increased 17% in the third quarter of 2017, from $36,908,900 to $43,004,200.

Illinois Quad Cities

Listing Inventory: The number of properties for sale in the Illinois Quad Cities is down 5%; from 845 listings last year to 803 listings currently on the market. Properties Sold: 5% more properties sold, comparing 1,654 sales through September 2016 to 1,737 sales through September 2017. Average Sales Price: The average sales price was up 3%, from $118,300

through September 2016 to $121,800 through September 2017. Residential Sales Volume: Sales volume increased 8% through the third quarter of 2017 from $195,718,000 to $211,542,900.

Iowa Quad Cities

Listing Inventory: There are 581 properties listed for sale, 14% fewer than the same time last year when there were 672 properties for sale. Properties Sold: A comparable amount of properties sold through the third quarter of 2017, comparing 2,022 sales in 2016 to 2,028 sales this year. Average Sales Price: The average sales price increased 5%; from $191,300 through September 2016 to $200,100 through September 2017. Residential Sales Volume: Sales volume increased 5%, from $386,844,000 through September 2016 to $405,864,700 through September 2017.

Iowa City Area

Listing Inventory: The number of properties for sale in Iowa City is down 6%, a decrease from 1,058 in 2016 to 993 properties currently on the market. Properties Sold: A comparable amount of properties sold during the first three quarters of 2017, from 2,578 sales in 2016 to 2,577 sales in 2017. Average Sales Price: The average sales price was $235,900; a 6% increase from the first three quarters of 2016 when the average sales price was $222,000. Residential Sales Volume: Sales volume increased 6%, from

$572,368,900 through September 2016 to $607,926,100 through September 2017.

Muscatine & Wilton Area

Listing Inventory: There are 180 homes and condominiums listed for sale, 23% more than the same time last year when there were 146 listings. Properties Sold: 3% more residential properties sold in the first three quarters of 2017, comparing 439 sales last year to 450 sales this year. Average Sales Price: The average sales price was $154,100, a 12% increase from the average sales price in the first three quarters of 2016 when it was $137,300. Residential Sales Volume: Sales volume was up 15%, from $60,265,200 through September 2016 to $69,327,900 through September 2017.

Southwest Wisconsin Area

Listing Inventory: There are 235 properties for sale, a 26% decrease compared to the same time last year when there were 319 listings. Properties Sold: There were 403 properties sold through third quarter this year, which is 9% more than the 371 properties that sold in 2016. Average Sales Price: The average sales price was $140,200 during the first three quarters of 2017, 8% higher than in 2016 when the average sales price was $129,600. Residential Sales Volume: Sales volume was up 18%, an increase from $48,081,000 through September 2016 to $56,520,100 through September 2017.

Why a Pre-Inspection Saves You Time and Money If you are thinking of moving within the next year, there are things you can do now that will save you money and headaches when it comes time to list your property. One of the most beneficial, and often overlooked, steps you can take now is to order a pre-inspection. A pre-inspection is a critical step for you to take to sell your home in the least amount of time possible, for the most amount of money possible, and with as little hassle as possible. Here’s why: • You have more control of the process. When you order the inspection, you get to walk around your home with the inspector and ask questions. This allows you the

opportunity to explain issues and/or correct any mistakes on the report. You can’t do this if you wait for the buyer to order the inspection. • You get to decide. You can choose the inspector and the contractor. Otherwise, it could be at the buyer’s discretion. • You avoid rushed decisions and increased cost. If you have to make the repairs based on the buyer’s request, then you will have a restricted timeline or a required contractor, which could mean more cost and more stress. • You increase the likelihood of closing - and closing on time. Often, home inspections are the landmine in the process of closing. They can re-open

negotiations, costing you money, or result in the deal falling apart in the 11th hour. • You strengthen your negotiating power. If you are able to fix any issues upfront, then you can set the price of your home and remove the ability for the buyer to add improvements, or re-negotiate the price, based on the inspections. If you have a clean report, then you can use it as a marketing tool. • You limit liability. If you provide the report when you list your home, it could give you protection from legal claims because you disclosed issues upfront. Find more tips for selling your home at RuhlHomes.com/SellersGuide.

RuhlHomes.com • 3


2017 Regional Real Estate Activity Through September

Average 2017 Sales Price

% Change in Average Sales Price from 2016

$124,600 $184,600 $98,000 $163,200 $192,500 $186,000 $99,100 $121,800 $200,100 $235,900 $154,100 $140,200 $178,900

+7% +5% 0% -6% +6% +4% +9% +3% +5% +6% +12% +8% +5%

Burlington Area Cedar Rapids Area Clinton/Camanche/Fulton DeWitt Dubuque Area Galena & Galena Territory Galesburg Area Illinois Quad Cities Iowa Quad Cities Iowa City Area Muscatine/Wilton Area Southwest Wisconsin Area 2017 Regional Total

2017 Number Sold

790 3,773 293 92 1,152 147 434 1,737 2,028 2,577 450 403 13,876

% Change in Number Sold from 2016

0% +3% -18% +6% +8% +1% +7% +5% 0% 0% +3% +9% +2%

2017 Sales Volume

$98,417,200 $696,537,300 $28,727,500 $15,013,600 $221,702,800 $27,340,800 $43,004,200 $211,542,900 $405,864,700 $607,926,100 $69,327,900 $56,520,100 $2,481,925,100

% Change in Sales Volume from 2016

+8% +8% -18% 0% +15% +5% +17% +8% +5% +6% +15% +18% +8%

Active Listing Count 2017

516 1,278 231 24 407 290 238 803 581 993 180 235 5,776

% Change in Active Listings from 2016

-21% -14% -28% -31% 0% -24% NA -5% -14% -6% +23% -26% -12%*

Months of Inventory

6.4 3.7 7.0 2.5 3.8 12.7 12.4 5.2 2.9 5.7 3.9 5.7

*The counties we track for the Galesburg Area have changed. Regional total % change in active listings is based on 2017 totals without Galesburg Area (5,538) compared to 2016 totals without Galesburg Area (6,329).

Summary of Regional Real Estate Activity Burlington Area

Listing Inventory: There are 516 homes and condominiums listed for sale in Burlington, Iowa and the surrounding area. A 21% decrease compared to 655 through third quarter 2016. Properties Sold: A comparable amount of residential properties sold year-to-date than the same time period last year, comparing 788 sales last year to 790 sales this year. Average Sales Price: The average sales price was $124,600, a 7% increase from the average sales price of $116,200 through September 2016. Residential Sales Volume: Sales volume was up 8%, an increase from $91,527,600 through September 2016 to $98,417,200 through September 2017.

Cedar Rapids Area

Listing Inventory: There are 1,278 residential properties listed for sale in the Cedar Rapids area, 14% fewer than the same time last year when there were 1,490 properties listed. Properties Sold: Through September this year 3,773 properties sold, 3% more than the 3,667 that sold through September 2016. Average Sales Price: The average sales price was $184,600 through September 2017, 5% more than the average sales price of $176,400 through September 2016. Residential Sales Volume: Sales volume increased 8% from 2 • RuhlHomes.com

$646,720,500 through the third quarter of 2016 to $696,537,300 through the third quarter of 2017.

Clinton, Camanche & Fulton

Listing Inventory: There are 28% fewer properties listed for sale in the Clinton, Camanche and Fulton; comparing 231 current listings to 319 properties for sale last year. Properties Sold: 18% fewer properties sold through the third quarter of 2017, a decrease from 357 sales in 2016 to 293 sales in 2017. Average Sales Price: The average sales price through September 2017 was $98,000, comparable to the average sales price of $98,400 through September 2016. Residential Sales Volume: Sales volume was down 18% through September 2017, from $35,112,700 in 2016 to $28,727,500 in 2017.

DeWitt

Listing Inventory: DeWitt’s listing inventory is down 31% from 35 properties listed for sale last year to 24 properties currently listed. Properties Sold: 92 properties sold and closed during the first three quarters of 2017, a 6% increase compared to 87 sales in 2016. Average Sales Price: The average sales price of homes sold through September 2017 was $163,200, 6% less than year to date in 2016 when the average sales price was $173,100.

Residential Sales Volume: Sales volume remained consistent in 2017, from $15,062,000 in 2016 to $15,013,600 in 2017.

Dubuque Area

Listing Inventory: There are 407 residential properties listed for sale; the same as last year when there were also 407 properties for sale. Properties Sold: 8% more properties sold in the first three quarters of 2017; an increase from 1,063 closings through September 2016 to 1,152 in 2017. Average Sales Price: The average sales price of homes sold through September 2017 was $192,500, a 6% increase over the average sales price of $180,900 through September 2016. Residential Sales Volume: Sales volume for the first three quarters of 2017 was $221,702,800, up 15% from the same period in 2016 when sales volume was $192,268,300.

Galena & Galena Territory

Listing Inventory: There are 290 properties for sale in Galena and the Galena Territory; 24% fewer than the same time last year when there were 383 listings. Properties Sold: There was a 1% increase in the number of properties sold in the first three quarters of 2017, comparing 145 sales in 2016 to 147 sales in 2017. Average Sales Price: The average

Summary continued on page 3


R

Tight Inventory Causes Increases in Home Price Appreciation Five-year home appreciation in our region was between 8.13% and 14.74% with all of our regional Metropolitan Statistical Areas experiencing a positive gain. “U.S. house prices rose in nearly every state during the second quarter,” said FHFA senior economist William Doerner. “The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years.” In the past year, home prices are up: 3.64% in Dubuque; 2.83% in Iowa City; 3.64% in the Quad Cities and 2.78% in Cedar Rapids. This compares to other cities: Des Moines up 5.24% and Chicago up 5.34%. This data is provided by the FHFA for the second quarter of Metropolitan Statistical Areas (MSAs)

Cedar Rapids, IA Davenport-MolineRock Island, IA-IL Des MoinesWest Des Moines, IA Dubuque, IA Iowa City, IA USA

2017. Of course, there is considerable variation based on price range and location of properties, with more affordable properties appreciating more. “Tight inventory continues in the affordable price ranges to be the story of our local markets,” said Caroline Ruhl, President of Ruhl&Ruhl Realtors. “Tight inventory means there are fewer homes for sale than we normally see in comparison to the number of buyers looking. Although it varies by price range and neighborhood, we are still seeing a strong seller’s market in many areas of our region. Even if you are considering selling in the next year, now is a good time to start the process and to get a free market analysis from a Ruhl&Ruhl sales associate.”

Burlington Area (Southeast Iowa Regional Board of

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 North, South and West Dubuque Illinois Wisconsin

+2.78%

+8.13%

221

+3.64%

+12.15%

193

Galena & Galena Territory (Realtor Assoc. of North Galena Galena Territory Galesburg Area (Capital Area Association of Realto Illinois Quad Cities (Quad City Area Realtor Assoc.

+5.24%

+20.56%

156

Milan & Rural Rock Island County

+3.64% +2.83% +6.64%

+12.47% +14.74% +34.24%

194 220

Percent Change in House Prices 1 Year 5 Year

2017 2nd Quarter National Ranking of 254 MSAs*

Information courtesy of Federal Housing Finance Agency (FHFA) for second quarter 2017. 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.

Homesnap: Your New Mobile Resource Ruhl&Ruhl Realtors has launched a new, award-winning mobile application called Homesnap. Homesnap, a nationwide, user-friendly application, is now available in the Quad Cities, Clinton, Cedar Rapids, Muscatine, and Burlington. The application will be available soon in all other markets. Homesnap is a state-of-the-art app backed by many different real estate professionals across the country. It has had $10 million invested into it, and it is highly rated in the app stores. With Homesnap, you will be able to access real-time data for any house on the go. Search listings and rentals by address, zip code, map, MLS ID, or by snapping a photo of the outside! View detailed information on listings like school districts, property history, accurate lot boundaries, and so much more. Contact your Ruhl&Ruhl sales 4 • RuhlHomes.com

Through September

associate to download their branded Homesnap to always stay onetap away during the home search process! And utilize the in-app one-tap messaging to communicate with your agent about homes you are interested in! Or contact us at 866-441-1776 to be put in touch with a Ruhl&Ruhl agent!

Rock Island 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

Muscatine & Wilton Area (Muscatine Board of Real Muscatine Wilton Muscatine Outlying Condominiums

Southwest Wisconsin Area (S. Central Wisconsin M

This representation is based in part on data supplied by the REALTOR Associati The counties we track for the Burlington Area are Des Moines, Henry, and Lee in


Regional Residential Real Estate Activity Current MLS Listings Realtors)

Realtors)

Lisbon, etc.

or Assoc.)

% of Active Listings

516 1,278

2017 Avg. Sales Price

2017 Sales Volume

2017 # Sold

$124,600

$98,417,200

790

% of Unit Sales

Sales/ List

2016 # Sold

2016 Avg. Sales Price

2016 Sales Volume

95%

788

$116,200

$91,527,600

$184,600

$696,537,300

3,773

99%

3,667

$176,400

$646,720,500

109

8%

163,800

47,651,400

291

8%

97%

305

174,600

53,254,300

149

12%

182,600

96,246,400

527

14%

98%

540

175,300

94,682,300

114

9%

159,600

59,194,100

371

10%

99%

347

149,600

51,897,800

82

6%

142,800

44,853,500

314

8%

99%

311

142,100

44,187,900

24

2%

283,700

23,266,200

82

2%

98%

71

245,300

17,419,000

138

11%

226,500

102,624,400

453

12%

100%

443

214,100

94,836,900

149

12%

170,200

64,861,800

381

10%

97%

327

157,900

51,618,300

169

13%

160,500

56,479,700

352

9%

97%

344

153,900

52,937,100

122

10%

304,700

71,600,300

235

6%

98%

199

318,600

63,398,900

222

17%

21%

122,488,000

169,200

129,759,500

767

101%

780

157,000

231

$98,000

$28,727,500

293

95%

357

$98,400

$35,112,700

24

$163,200

$15,013,600

92

93%

87

$173,100

$15,062,000

$192,500

$221,702,800

1,152

95%

1,063

$180,900

$192,268,300

253

62%

196,800

160,568,000

816

71%

96%

793

188,700

149,641,400

108

27%

172,100

46,114,300

268

23%

94%

226

152,800

34,535,000

30

7%

224,400

11,669,500

52

5%

89%

28

199,600

5,588,200

4%

209,400 $186,000

3,351,000 $27,340,800

16 147

1%

95% 86%

16 145

156,500

2,503,700

hwest IL)

16 290

23% 77%

135,900 217,700 $99,100

7,747,100 19,593,700 $43,004,200

57 90 434

39% 61%

ors)

68 222 238

86% 86% 94%

64 81 405

$179,700 164,400 191,800 $91,100

$26,054,400 10,518,500 15,535,900 $36,908,900

$121,800 95,300 153,700

$211,542,900 30,589,500 21,059,600

1,737 321 137

19% 8%

96% 96% 93%

1,654 322 114

$118,300 91,000 141,000

$195,718,000 29,314,700 16,071,400

.)

ltors)

MLS Board)

407

803 139 62

17% 8%

163

20%

115,900

46,840,400

404

23%

97%

374

115,600

43,218,600

47

6%

144,000

13,249,300

92

5%

97%

121

140,300

16,970,700

91

11%

110,500

26,413,400

239

14%

97%

201

99,400

19,970,400

61

8%

188,600

13,576,400

72

4%

96%

67

191,400

12,826,000

54

7%

116,300

13,146,800

113

7%

95%

107

109,100

11,672,800

137

17%

129,700

34,637,500

267

15%

97%

269

134,100

36,061,300

49

6%

5%

96%

79

121,700

9,612,100

98%

2,022

$191,300

$386,844,000

581

130,800

12,030,000

92

$200,100

$405,864,700

2,028

280

48%

148,000

155,007,700

1,047

52%

98%

1,039

144,100

149,762,300

159

27%

309,000

138,125,900

447

22%

99%

447

298,700

133,507,100

13

2%

215,100

20,004,400

93

5%

98%

73

197,200

14,395,800

45

8%

291,100

26,486,400

91

4%

98%

115

249,000

28,638,100

26

5%

264,800

29,129,900

110

5%

99%

93

243,300

22,630,900

23

4%

122,500

8,696,100

71

4%

95%

41

116,000

4,756,000

35 993

6%

168,100 $235,900

28,414,300 $607,926,100

169 2,577

8%

98% 98%

214 2,578

154,900 $222,000

33,153,800 $572,368,900

251

25%

295,800

175,698,200

594

23%

98%

610

266,300

162,437,500

56

6%

333,100

50,296,300

151

6%

98%

152

313,200

47,609,600

114

11%

305,500

82,795,800

271

11%

99%

287

308,300

88,489,400

27

3%

196,600

12,388,200

63

2%

97%

55

187,600

10,319,100

13

1%

157,600

6,936,500

44

2%

98%

59

143,400

8,462,900

60

6%

192,200

28,639,500

149

6%

97%

134

179,000

23,988,300 25,718,200

45

5%

308,000

26,486,300

86

3%

97%

87

295,600

123

12%

180,800

65,465,300

362

14%

98%

330

166,000

54,795,400

304

31%

185,800

159,220,000

857

33%

99%

864

174,200

150,548,500

$154,100

$69,327,900

450

97%

439

$137,300

$60,265,200

107

59%

155,500

44,158,800

284

63%

97%

291

135,000

39,288,700

7

4%

155,100

5,895,500

38

9%

98%

25

146,200

3,654,500

56

31%

148,800

16,817,400

113

25%

96%

101

141,400

14,285,800

10

6%

3%

99%

22

138,000

3,036,200

92%

371

$129,600

$48,081,000

180

235

163,700

2,456,200

15

$140,200

$56,520,100

403

ions or their Multiple List­ing 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. n Iowa; Hancock and Henderson in Illinois. The counties we track for the Galesburg Area are Knox and Warren. The counties we track for the Southwest Wisconsin Area are Grant and Lafayette.

RuhlHomes.com • 5


Quad Cities MLS Statistics - Iowa & Illinois Combined Through September Current MLS Listings Average Sales Price Total Sales Volume Total # of Sales YTD

2013

2014

2015

2016

2017

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

1,571 $158,500 $582,562,000 3,676

1,384 $161,000 $617,407,600 3,765

% Change 2016 vs. 2017 -11.9% +1.6% +6.0% +2.4%

Iowa Cropland Values Up in Last Year The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average increase of 2.0% for tillable cropland values from the March 2017 to September 2017 period. Combining this increase with the 0.9% reported in September 2016 indicates a statewide average increase of 2.9% for the year from September 1, 2016 to September 1, 2017. The survey shows the first full year statewide increase in land values since 2013, indicating some current stability. In our east central district, high quality cropland is selling at $9,903 per acre, or at the second highest rate in the state. Timber is selling at $2,237 per acre. Overall, the increase in our district was 3.6% - the highest in the state of Iowa. “It is positive to see land prices on the

rise,” said Eric Schlutz, ALC, REALTOR® and manager of the Ruhl&Ruhl Realtors Muscatine Office. “This will stabilize prices but we are still cautiously optimistic because there are a lot of other factors that will continue to affect land values in our region.” To see land values in dollars per acre for various parts of the state and by quality of cropland, please go to

RuhlLand.com/Value. “I wasn’t surprised to see the results of the most recent land survey as land prices have stabilized, and even trended upward, this past year especially for the higher and upper medium quality cropland,” said Dennis Stolk, ALC, REALTOR®. “The increase in prices is somewhat driven by a

scarcity of available land for sale in many areas, as well as low interest rates and continued good buyer demand. Farmers still remain in a strong equity position and have cash on hand and are looking to buy. Moving forward, our land market will continue to be sensitive to what happens with commodity and livestock prices and its impact on farm income.” Survey participants are asked to estimate the average value of farmland as of September 1, 2017 for bare, unimproved land with a sale price on a cash basis. Ruhl Farm&Land, a division of Ruhl&Ruhl Realtors, is focused on the sale, purchase and marketing of land, farms and acreages.

A division of Ruhl&Ruhl REALTORS

Part of Iowa

high quality crop land

medium quality crop land

low quality crop land

tillable cropland

East Central

$9,903/acre

$7,284/acre

$4,494/acre

+3.6%

%

change in

non-tillable pasture

timber

$2,769/acre $2,237/acre

Farm Land values in Dollars Per Acre for September 2017

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 6 • RuhlHomes.com

Active Inventory 9/30/15

132 94 38 44 32 12 6 3 3 78 54 24 277 140 137 537

Active Inventory 9/30/16

154 79 75 44 26 18 5 4 1 90 70 20 276 128 148 569

Active Inventory 9/30/17

132 93 39 60 41 19 6 5 1 97 74 23 305 147 158 600

% Change in Inventory from 2016

-14% +18% -48% +36% +58% +6% +20% +25% 0% +8% +6% +15% +11% +15% +7% +5%

Sales 2015

239 143 96 49 44 5 5 4 1 183 136 47 316 181 135 792

Sales 2016

233 136 97 75 65 10 10 7 3 174 132 42 358 205 153 850

Sales 2017

274 159 115 65 49 16 7 6 1 165 113 52 352 185 167 863

% Change in Sales from 2016

+18% +17% +19% -13% -25% +60% -30% -14% -67% -5% -14% +24% -2% -10% +9% +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 Williamsburg, Wellman & Kalona West Liberty Muscatine Area Muscatine Muscatine County Wilton Other Areas Clinton DeWitt Maquoketa, Preston & Bellevue Total Regional Starts

2014 2008

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 11 321 128 24 132 33 4 0 33 10 16 7 34 11 9 14 1,408

2015

2016

2017

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 4 295 98 17 104 64 8 4 28 9 18 1 30 9 10 11 1,389

22 22 0 475 231 138 83 23 256 86 0 8 31 14 117 123 71 4 3 3 1 7 24 1 9 358 83 132 56 41 38 8 265 111 13 72 60 5 4 27 3 21 3 37 15 9 13 1,563

17 15 2 410 160 144 88 18 199 51 3 1 23 22 99 93 41 0 3 2 0 4 28 2 13 290 83 113 34 32 20 8 277 126 16 80 31 12 12 32 8 21 3 42 26 7 9 1,360

% Change 2016 vs. 2017 -23% -32% +200% -14% -31% +4% +6% -22% -22% -41% +300% -88% -26% +57% -15% -24% -42% -100% 0% -33% -100% -43% +17% +100% +44% -19% 0% -14% -39% -22% -47% 0% +4% +14% +23% +11% -48% +140% +200% +19% +167% 0% 0% +14% +73% -22% -31% -13%

Source: Municipal offices. There may be additional new homes built which are not included with this data.

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Condo Sales Prop Up Slow 3rd Quarter New Homes Market Condo sales continue to bolster the new homes market across the region, with our regional Multiple Listing Services reporting a 15% increase in new condo sales YTD. This helps offset a 6% decline in the number of new houses sold, for a combined increase of 1% in overall unit sales. Overall new home inventory is up 5% vs. the same time last year. Condo sales represent over 40% of both YTD new home sales and current inventory across the region. Results vary by market, and are detailed in the chart on page 6, while new home starts are shown to the left. The Iowa City area remains the most active new homes market in the region with a 5 to 1 ratio of existing vs. new home sales. The regional average is 9.5 to 1. These charts show the continuing upward trend for prices of new homes sold. Houses: YTD 2017 YTD 2016 YTD 2015 Below $300K 33% 39% 43% $300 - $400K 38% 37% 35% Above $400K 29% 24% 22% Condos: YTD 2017 YTD 2016 YTD 2015 Below $200K 37% 36% 58% $200 - $300K 46% 46% 36% Above $300K 17% 18% 6%

CEDAR RAPIDS: The area continues to lead the region as the only segment to report a YTD sales gain. The 18% gain is shared pretty evenly between new houses and condos. Overall inventory levels are 14% lower than last year, with condo supplies down 48%. The Cedar Rapids market remains the most affordable new homes market in our region and has 1 new home sale for every 8 existing home sales. DUBUQUE: Strong condo sales in the 3rd quarter helped support lagging house sales. YTD condo sales are up 60%, while house sales in Dubuque are down 25% vs. 2016. At the same time, condo inventories are up 6% and house inventories are up 58%, with an 8 month supply available. House sales above $400K are up 37%, while condos above $300K are up 125% YTD. There have been 16 existing home sales for every 1 new home sale in the market YTD. IOWA CITY: While remaining the strongest new homes market in the region, Iowa City sales are down slightly from this time last year with 6 fewer sales - a 2% decline. House sales have declined by 10%, while condo sales have increased Condo Sales Prop Up continued on page 8 RuhlHomes.com • 7


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Condo Sales Prop Up continued from page 7

by 9%. At the same time, the market’s available inventory has risen 11%. Condo sales in Tiffin have been the steadiest segment of the area, reporting a 14% YTD increase. The outlying areas of this segment have shown a 19% overall sales increase, albeit with smaller volume. QUAD CITIES: With a 27% decline in 3rd quarter sales, the area surrendered earlier sales gains to now show a 7% drop

from the same time last year. While condo sales are up 18%, houses are down 14% YTD. Both condo and house supplies are up slightly, for a combined increase of 8%. The Quad Cities continues to feature higher priced new construction with over 50% of house sales above $400K and 44% of condo sales above $300K. In Scott County there have been 11 existing sales for every new home sale this year. When combined with Rock Island County, the

QCA reports an 18 to 1 ratio, making it the least active new homes market in the region. While the cloud of uncertainty that surrounds government regulation, pending tax law, volatility in the construction materials market following a string of natural disasters and general economic conditions hangs over the new homes market, it will never be any less expensive to own your dream home!

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Realtors Bettendorf Office (309) 292-1881 • (309) 644-0485 ConnieCoster@RuhlHomes.com ConnieCoster.RuhlHomes.com MirandaMendoza@RuhlHomes.com MirandaMendoza.RuhlHomes.com

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Connie Coster & Miranda Mendoza Facts and Trends Fall 2017  
Connie Coster & Miranda Mendoza Facts and Trends Fall 2017