Caroline Ruhl & Chris Beason Facts & Trends Fall 2019

Ruhl&Ruhl Realtors

Fall 2019

Low Inventory Causes Decline in Home Sales 2% fewer homes have sold across our

Caroline Ruhl, CEO Chris Beason, President

RuhlHomes.com

IN THIS ISSUE: page­ 4

Home Appreciation Strong Across Region

region during the first three quarters of the year than sold last year. This has been caused primarily by a shortage of affordable inventory. As always, there is significant variation from market to market, as shown on page 2 in our Regional Activity Chart.

Buyer’s Market in Upper Price Ranges

We continue to have a bifurcated

market, with strong demand for but falling inventory of affordable homes for sale, but less demand for the abundant inventory of expensive homes for sale.

Fewer than 4 months of inventory is a seller’s market, 4-6 months of inventory is a market balanced between buyers and sellers, and greater than 6 months of inventory is a buyer’s market. See a comparison below of some of our markets.

Months of inventory for all of our markets is shown on the Activity Chart on page 2.

Fall Months of Inventory

Fall Months of Inventory

Market

Price

Iowa City Area

< $300K

3.4

5.8

5.3

> $300K

7.5

12.2

9.2

2017 2018 2019

The extremes are a real shortage of

affordable homes in the Iowa Quad Cities - only 2.3 months of inventory, and a significant increase in the months of inventory in the expensive homes in the Illinois Quad Cities, 12.3 months of inventory.

Investors are still buying up affordable homes at a fast pace, contributing to our shortage of affordable homes for sale.

Sales Volume Up Due to Appreciation Appreciation in home values across

our region continues at a healthy pace, ranging from 1.5% in the past year to 4.4%.

The greatest appreciation has been in affordable homes while expensive homes appreciated less, and in some markets not at all due to excessive inventory. Sales volume in our overall market was up 1% but way more or less in specific markets, as shown in the Activity Chart on page 2.

page­ 4

Market

Price

page­ 6

Cedar Rapids Area

< $400K

3.0

3.6

3.2

> $400K

10.0

11.0

7.8

Dubuque Area

< $350K

3.3

3.0

3.7

Interest rates are still at historically low

> $350K

9.9

16.0

6.5

Illinois Quad Cities

< $300K

5.1

3.5

3.6

> $300K

7.5

6.7

12.3

< $450K

2.8

2.5

2.3

> $450K

5.8

8.9

6.2

levels, down from 5.90% on average last fall to 3.625% this fall. As of October 16, mortgage rates with no points were: 15-year Conventional Fixed...............3.250% 30-year Conventional Fixed..............3.625% FHA/VA 30-year Fixed........................3.500% 5/1 ARM (Adjustable Rate Mortgage)........3.750% So it’s still a great time to refinance!

Local Iowa Communities Score High Federal Housing Authority Issues New Condo Rule

Iowa Quad Cities

2017 2018 2019

Low Interest Rates Make Now a Great Time to Buy

2019 Regional Real Estate Activity* Through September Burlington Area Cedar Rapids Area Clinton/Camanche/Fulton Area DeWitt Area Dubuque Area Galena & Galena Territory Galesburg Area Illinois Quad Cities Iowa Quad Cities Iowa City Area Muscatine/Wilton Area Southwest Wisconsin Area 2019 Regional Total

Average 2019 Sales Price

$123,300 $197,000 $114,100 $185,600 $202,500 $180,600 $99,800 $131,900 $223,600 $249,500 $155,200 $151,000 $191,000

% Change in Average Sales Price from 2018

2019 Number Sold

% Change in Number Sold from 2018

754 3,750 445 120 1,038 117 417 1,553 1,959 2,557 405 397 13,512

+4% +2% +8% +22% +7% +1% -1% 0% +7% +1% -2% +4% +3%

-1% +1% +6% +3% -8% -30% -2% -9% -1% -1% +1% -8% -2%

2019 Sales Volume

$92,949,500 $738,707,800 $50,775,200 $22,269,500 $210,163,700 $21,126,200 $41,628,000 $204,779,800 $438,108,400 $637,988,100 $62,846,300 $59,936,200 $2,581,278,700

% Change in Sales Volume from 2018

+4% +3% +15% +25% -1% -29% -4% -9% +5% 0% -1% -4% +1%

Active Listing Count 2019

501 1,360 297 48 371 250 207 736 558 1,187 151 226 5,892

% Change in Active Listings Months of from 2018 Inventory

-5% +3% +34% +85% -10% -16% -27% -2% -4% +2% -17% 0% -2%

7.0 3.5 6.5 3.7 4.1 14.5 10.8 3.9 2.6 6.3 3.3 6.6

*Several MLS mergers are causing some areas to be redefined. This is specifically affecting the percent change in active listing count year over year. The Quad Cities MLS, Capital Area MLS, Egyptian MLS, and Peoria Area MLS all merged into the Regional MLS Alliance. This affects the data in Clinton/Camanche/Fulton Area, DeWitt Area, Galesburg Area, Illinois Quad Cities, and Iowa Quad Cities.

Summary of Regional Real Estate Activity

Cedar Rapids Area

Listing Inventory: There are 1,360 residential properties listed for sale in the Cedar Rapids area, 3% more than the same time last year when there were 1,321 properties listed.

Properties Sold: Through September this year 3,750 properties sold, 1% more than the 3,714 that sold through September 2018.

Average Sales Price: The average sales price was $197,000 through September 2019, 2% more than the 2 • RuhlHomes.com

Cedar Rapids Area

Listing Inventory

Properties Sold

$738,707,800

2018 2019

$716,837,000

$197,000

2018 2019

$193,000

3,714

2018 2019

3,750

2018 2019

1,360

Listing Inventory: There are 501 homes and condominiums listed for sale in the Burlington area, which is a 5% decrease compared to 527 active listings at the same time last year.

Properties Sold: 1% fewer residential properties sold through the third quarter this year than through the same time period last year, comparing 760 sales in 2018 to 754 sales in 2019.

Average Sales Price: The average sales price was $123,300, which is a 4% increase from the average sales price of $118,000 through the first three quarters of 2018.

Residential Sales Volume: Sales volume was up 4%, an increase from $89,647,500 through September 2018 to $92,949,500 through September 2019.

average sales price of $193,000 through September 2018.

Residential Sales Volume: Sales volume increased 3% from $716,837,000 through the third quarter of 2018 to $738,707,800 through the third quarter of 2019.

1,321

Burlington Area

Average Residential Sales Price Sales Volume

Clinton, Camanche & Fulton Area

Listing Inventory: There are 34% more properties listed for sale in the Clinton, Camanche and Fulton area; comparing 297 current listings to 221 properties for sale last year.

Properties Sold: 6% more properties sold through the third quarter, comparing 418 sold in 2018 to 445 sold in 2019.

Average Sales Price: The average sales price through September 2019 was $114,100, up 8% compared to the average sales price of $105,600 through September 2018.

Residential Sales Volume: Sales volume was up 15% through September 2019, from $44,146,100 in the first three quarters of 2018 to $50,775,200 in the first three quarters of 2019.

DeWitt Area

Listing Inventory: DeWitt’s listing inventory is up 85% from 26 properties listed for sale last year to 48 properties currently on the market.

Properties Sold: 120 properties sold and closed during the first three quarters of 2019, a 3% increase compared to 117 sales in 2018.

Average Sales Price: The average sales price of homes sold through September 2019 was $185,600, 22% more than year to date in 2018 when the average sales price was $151,700.

Residential Sales Volume: Sales volume increased 25% in 2019, from $17,751,500 in 2018 to $22,269,500 in 2019.

Dubuque Area

Listing Inventory: There are 371 residential properties listed for sale in the Dubuque region, which is 10% fewer than at the same as last year when there were 412 properties for sale.

Properties Sold: 8% fewer properties sold in the first three quarters of 2019; a decrease from 1,125 sold through September 2018 to 1,038 sold through September 2019.

Summary continued on page 3

Summary continued from page 2

Average Sales Price: The average sales price of homes sold through September 2019 was $202,500, a 7% increase from the average sales price of $188,400 through September 2018.

Residential Sales Volume: Sales volume for the first three quarters of 2019 was $210,163,700, down 1% from the same period in 2018 when sales volume was $211,961,900.

Galena & Galena Territory

Listing Inventory: There are 250 properties for sale in Galena and the Galena Territory; 16% fewer than at the same time last year when there were 299 listings.

Properties Sold: There was a 30% decrease in the number of residential properties sold in the first three quarters of 2019, comparing 168 sales in 2018 to 117 sales in 2019.

Average Sales Price: The average sales price was $180,600 through September 2019, 1% more than last year when the average sales price was $178,200.

Residential Sales Volume: Sales volume was down 29% for the first three quarters of 2019, a decrease from $29,932,600 through September 2018 to $21,126,200 through September 2019.

Galesburg Area

Listing Inventory: There are 207 residential properties currently listed for sale in the Galesburg area, which is 27% fewer than the 282 that were listed at the same time last year.

Properties Sold: Sales decreased 2% from 427 properties sold through the third quarter of 2018 to 417 through September 2019.

Average Sales Price: The average sales price was $99,800 through September 2019, 1% less than the average sales price of $101,200 through September 2018.

Residential Sales Volume: Sales volume decreased 4% through the third quarter of 2019, from $43,197,100

in 2018 to $41,628,000 in 2019.

Illinois Quad Cities

Listing Inventory: The number of properties for sale in the Illinois Quad Cities is down 2%; from 753 listings last year to 736 listings currently on the market.

Properties Sold: Through the third quarter of 2019, 9% fewer properties sold, comparing 1,703 sales through September 2018 to 1,553 sales through September 2019.

Average Sales Price: The average sales price was $131,900 through September 2019, which is comparable to the average sales price of $132,500 through September 2018.

Residential Sales Volume: Sales volume decreased 9% through the third quarter of 2019, from $225,594,500 to $204,779,800.

Iowa Quad Cities

Listing Inventory: There are 558 homes and condominiums listed for sale in the Iowa Quad Cities, 4% fewer than at the same time last year when there were 579 properties for sale.

Properties Sold: 1% fewer properties sold through the third quarter of 2019, comparing 1,987 sales in 2018 to 1,959 sales this year.

Average Sales Price: The average sales price increased 7%; from $209,600 through September 2018 to $223,600 through September 2019.

Residential Sales Volume: Sales volume increased 5%, from $416,478,300 through September 2018 to $438,108,400 through September 2019.

Iowa City Area

Listing Inventory: The number of properties for sale in the Iowa City area is up 2%, an increase from 1,162 in 2018 to 1,187 properties currently on the market.

Properties Sold: 1% fewer properties sold through the first three quarters of 2019, comparing 2,570 sales in 2018 to 2,557 sales in 2019.

Average Sales Price: The average sales price was $249,500; a 1% increase from the first three quarters of 2018 when the average sales price was $247,600.

Residential Sales Volume: Sales volume remained steady, comparing $636,273,200 through September 2018 to $637,988,100 through September 2019.

Muscatine &â&#x20AC;&#x2C6;Wilton Area

Listing Inventory: There are 151 homes and condominiums listed for sale in the Muscatine and Wilton area, 17% fewer than at the same time last year when there were 181 properties for sale.

Properties Sold: 1% more residential properties sold through the first three quarters of 2019, comparing 400 sales last year to 405 sales this year.

Average Sales Price: The average sales price was $155,200, a 2% decrease from the average sales price through the first three quarters of 2018 when it was $158,800.

Residential Sales Volume: Sales volume was down 1%, from $63,500,400 through September 2018 to $62,846,300 through September 2019.

Southwest Wisconsin Area

Listing Inventory: There are 226 properties for sale in the southwest Wisconsin region, which is the same amount of properties listed for sale at the same time last year.

Properties Sold: There were 397 properties sold through third quarter this year, which is 8% fewer than the 431 properties that sold in 2018.

Average Sales Price: The average sales price was $151,000 through the first three quarters of 2019, 4% higher than 2018 when the average sales price was $144,600.

Residential Sales Volume: Sales volume was down 4%, a decrease from $62,326,400 through September 2018 to $59,936,200 through September 2019.

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

2015

2016

2017

2018

2019

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

1,332 $174,000 $642,072,800 3,690

1,294 $183,100 $642,888,200 3,512

% Change 2018 vs. 2019 -2.9% +5.2% +0.1% -4.8% RuhlHomes.com â&#x20AC;˘ 3

Home Appreciation Strong Across Our Region In the past year, home prices have increased: +1.51% in Dubuque; +3.82% in Iowa City; +4.40% in Cedar Rapids; and +2.87% in the Quad Cities. This compares to other cities: Des Moines up 2.72% and Chicago up 3.49%. Of course, there is considerable variation based on price range and location of properties, with more affordable properties appreciating more and expensive properties appreciating less, if at all.

“House prices rose again in all states and the top 100 metro areas, but the pace of growth has slackened,” said Dr. William Doerner, FHFA Supervisory Economist. “The majority of states Metropolitan Statistical Areas (MSAs)

and cities are experiencing slower house price gains than they did a year ago, even with constrained housing supply and extremely attractive mortgage rates.”

Five-year home appreciation in our region was between 12.37% and 19.63% with all of our regional Metropolitan Statistical Areas experiencing a positive gain.

“Our area’s housing costs are some of the most affordable in the nation,” said Caroline Ruhl, CEO of Ruhl&Ruhl Realtors. “This coupled with the trend of strong home appreciation makes local real estate a great long-term investment option.”

Percent Change in House Prices 1 Year 5 Year

2019 2nd Quarter National Ranking of 241 MSAs*

Cedar Rapids, IA

+4.40%

+13.98%

150

Davenport-Moline-Rock Island, IA-IL

+2.87%

+12.37%

208

Des Moines-West Des Moines, IA

+2.72%

+24.04%

214

Dubuque, IA

+1.51%

+16.23%

231

Iowa City, IA

+3.82%

+19.63%

171

USA

+4.99%

+32.92%

Information courtesy of Federal Housing Finance Agency (FHFA) for second quarter 2019. 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.

Local Iowa Communities Score High Housing Affordability

Is this Heaven? No, it’s Iowa. Our area’s overall cost of living, and in particular housing costs, are some of the most affordable in the country according to the 2nd quarter 2019 data released by The Council for Community and Economic Research.

The index compares 2,400 sq. ft. living area new houses on an 8,000 sq. ft. lot with 4 bedrooms and 2 baths.

The index for the second quarter of 2019 shows overall housing costs for these Iowa communities compared to the national average: Quad Cities 77.8% (22.2% below the national average), Burlington 62.4%, Cedar Rapids 81.0%, Dubuque 75.4%, and Iowa City 83.3%.

The index also compares the overall cost of living for each of the communities: Burlington 83.5% (16.5% below the national average), Cedar Rapids 94.7%, Quad Cities 92.9%, Dubuque 91.8%, and Iowa City 95.9%.

Interest rates are at their lowest levels in three years and inventory of homes available for sale remains relatively stable in the region overall.

In addition to affordability, the good news is that our regional, stable market continues to enjoy appreciation in our real estate values. Affordable homes are currently appreciating much more than expensive homes.

The representation in the chart on page 5 is based in part on data supplied by the REALTOR Associations 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. Boards include Southeast Iowa Regional Board of Realtors, Cedar Rapids Area Association of Realtors, Quad City Area Realtors, Dubuque Board of Realtors, Realtor Association of Northwest IL, Capital Area Association of Realtors, Iowa City Area Association of Realtors, Muscatine Board of Realtors, and South Central Wisconsin MLS Board. The counties we track for the Burlington Area are Des Moines, Henry, and Lee in Iowa; Hancock and Henderson in Illinois. The cities we track for the Clinton/Camanche/Fulton Area are Clinton and Camanche in Iowa; Albany, Fulton and Morrison in Illinois and surrounding communities. The cities we track for the DeWitt Area are DeWitt, Calamus and Wheatland and surrounding communities. 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.

4 • RuhlHomes.com

Regional Residential Real Estate Activity Through September

Current % of Active 2019 Avg. MLS Listings Listings Sales Price

2019 Sales Volume

$123,300

$92,949,500

754 3,750

Burlington Area

501

2019 % of Unit # Sold Sales

Sales/ List

2018 # Sold

2018 Avg. Sales Price

2018 Sales Volume

95%

760

$118,000

$89,647,500

99%

3,714

$193,000

$716,837,000

Cedar Rapids Area Southeast Cedar Rapids

1,360

$197,000

$738,707,800

103

8%

180,900

53,719,400

297

8%

97%

333

177,600

59,149,200

Northeast Cedar Rapids

152

11%

193,900

96,758,600

499

13%

99%

557

189,100

105,353,100

Southwest Cedar Rapids

105

8%

179,000

68,199,900

381

10%

99%

340

165,200

56,178,200

Northwest Cedar Rapids

74

5%

159,600

51,725,900

324

9%

99%

300

158,300

47,487,000

Hiawatha & Robins

30

2%

279,400

23,189,800

83

2%

98%

65

248,100

16,123,500

Marion

143

11%

236,000

106,418,700

451

12%

99%

474

231,400

109,696,400

Mechanicsville, Anamosa, Mt. Vernon, Lisbon, etc.

182

13%

181,700

67,939,800

374

10%

97%

328

171,200

56,150,000

69,521,200

392

335

173,500

58,113,500

214

342,700

73,336,600

768

176,100

135,249,500

418

$105,600

$44,146,100

Walford, Fairfax, Atkins, etc.

152

11%

177,400

10%

97%

Corridor Area: Solon, Ely, Swisher

108

8%

331,700

69,983,700

211

6%

99%

Condominiums

311

23%

177,800

131,250,800

738

20%

100%

297

$114,100

$50,775,200

445

93%

Clinton/Camanche/Fulton Area

48

$185,600

$22,269,500

120

97%

117

$151,700

$17,751,500

Dubuque Area

371

$202,500

$210,163,700

1,038

96%

1,125

$188,400

$211,961,900

Dubuque

202

55%

219,500

157,816,400

719

69%

97%

767

193,100

148,093,600

North, South and West Dubuque

138

37%

163,700

41,240,200

252

24%

94%

290

173,600

50,355,000

23

6%

172,400

8,446,000

49

5%

94%

39

193,700

7,555,500

8 250

2%

147,800 $180,600

2,661,100 $21,126,200

18 117

2%

90% 89%

29 168

196,100 $178,200

5,687,800 $29,932,600

53 197 207

21% 79%

155,600 194,600 $99,800

6,534,600 14,591,600 $41,628,000

42 75 417

36% 64%

87% 90% 92%

60 108 427

172,300 181,400 $101,200

10,337,900 19,594,700 $43,197,100

$204,779,800 30,649,200 15,067,900

1,553 292 97

19% 6%

97% 97% 97%

1,703 328 104

$132,500 104,300 197,100

$225,594,500 34,215,600 20,501,600

49,463,300

397

26%

97%

427

121,000

51,679,600

58

211,200

12,249,700

230

124,000

28,527,400

97

163,900

15,895,300

119

120,000

14,280,700

250

147,400

36,840,500

DeWitt Area

Illinois Wisconsin Galena & Galena Territory Galena Galena Territory Galesburg Area

Milan & Rural Rock Island County

736 142 47

19% 7%

$131,900 105,000 155,300

Moline

172

23%

124,600

3%

208,100

116

16%

122,300

61

8%

68

9%

103

14%

142,500

34,617,500

8

1%

131,800

5,535,100

$223,600

Illinois Quad Cities Rock Island

Coal Valley, Rural Moline, Miscellaneous East Moline & Silvis Port Byron, Upper Rock Island County Mercer County Henry County Condominiums

19

213,100 117,500

9,779,700 28,240,600

47 231

3%

97%

15%

97%

5%

96%

8%

96%

16%

97%

2%

96%

90

126,700

11,404,100

$438,108,400

243 42 1,959

98%

1,987

$209,600

$416,478,300

1,072

164,300

176,083,900

430

323,600

139,130,800

76

193,700

14,719,100

96

307,600

29,527,300

82

264,600

21,696,900

102

149,200

15,220,500

129 2,570

155,800 $247,600

20,099,800 $636,273,200

16,619,500 14,807,000

78 126

Iowa Quad Cities

558

Davenport

253

45%

166,800

166,935,800

1,001

51%

98%

Bettendorf & Riverdale

131

23%

334,600

154,570,300

462

24%

99%

Blue Grass, Buffalo, Durant & Walcott

22

4%

221,900

22,858,000

103

5%

98%

LeClaire, Pleasant Valley & Princeton

45

8%

293,000

29,299,700

100

5%

98%

North Scott

63

11%

284,300

35,534,700

125

6%

99%

41

7%

172,200

19,291,100

112

6%

97%

3 1,187

2%

171,800 $249,500

3%

98% 98%

259

22%

298,700

9,618,800 $637,988,100

56 2,557

178,619,600

598

23%

98%

6%

341,000

61,728,200

181

138

12%

319,300

79,825,600

250

27

2%

13,620,800

69

Southeast Iowa City

14

1%

176,000

6,865,900

Southwest Iowa City

51

4%

206,400

29,310,500

Miscellaneous Condominiums Iowa City Area Iowa City Coralville Northwest Iowa City Northeast Iowa City

70

197,400

7%

98%

10%

99%

3%

97%

39

2%

98%

142

6%

98%

Corridor Area

55

5%

361,400

27,108,700

75

3%

98%

Miscellaneous

167

14%

211,000

80,392,900

381

15%

98%

Condominiums

406

34%

195,300

160,515,900

822

31%

99%

Muscatine & Wilton Area

151

$155,200

$62,846,300

405

42,267,000

269

66%

97%

Muscatine Wilton Muscatine Outlying Condominiums Southwest Wisconsin Area

97%

611

294,400

179,890,100

140

329,100

46,080,400

268

339,300

90,924,700

48

195,500

9,384,700

39

172,300

6,718,200

146

186,900

27,290,500

101

315,100

31,823,600

366

194,000

70,999,400

851

203,500

173,161,600

400

$158,800

$63,500,400

268

158,700

42,534,000

28

149,100

4,175,400

82

158,100

12,967,000

92

61%

157,100

7

5%

174,300

3,486,900

20

5%

96%

46

30%

145,500

15,273,500

105

26%

95%

6

4%

165,400

1,818,900

11

3%

99%

22

173,800

3,824,000

$59,936,200

397

95%

431

$144,600

$62,326,400

226

$151,000

RuhlHomes.com â&#x20AC;˘ 5

Federal Housing Authority Issues New Condominium Approval Rule

In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) published a longawaited final regulation, and policy implementation guidance, which establish a new condominium approval process.

Designed to be flexible and responsive to market conditions, FHA’s new condo rule and the new Condominium Project Approval section of the Single Family Housing Policy Handbook, provide a comprehensive revision to FHA condominium project approval policy.

In particular, the new policy will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved.

The policies became effective October 15, 2019.

FHA’s new condominium policy is part of a broader Administration objective to reduce regulatory barriers that currently restrict affordable homeownership opportunities.

FHA’s new rule: • Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible

for FHA-insured financing.

• Extends the recertification requirement for approved condominium projects from two to three years.

• Allows more mixed-use projects to be eligible for FHA insurance.

“This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium,” HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery said.

The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA’s mortgage insurance programs. As a result of FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.

Learn more about the new condominium approval rule by visiting www.hud.gov. And learn more about your financing options at www.RuhlMortgage.com or by calling 866-441-1862.

Regional New Construction Inventory & 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 9/30/17

Active Inventory 9/30/18

Active Inventory 9/30/19

% Change in Inventory from 2018

Sales 2017

Sales 2018

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

147 95 52 59 35 24 11 7 4 101 83 18 316 119 197 634

154 100 54 65 32 33 6 3 3 97 83 14 272 119 153 594

+5% +5% +4% +10% -9% +38% -45% -57% -25% -4% 0% -22% -14% 0% -22% -6%

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

249 174 75 66 48 18 5 5 0 165 124 41 411 194 217 896

% Change in Sales Sales 2019 from 2018

222 152 70 63 34 29 11 9 2 168 122 46 298 151 147 762

-11% -13% -7% -5% -29% +61% +120% +80% +100% +2% -2% +12% -27% -22% -32% -15%

New Home Sales Slow in 3rd Quarter

New Housing Starts Through September

2016 2008

Burlington Area Burlington West Burlington Cedar Rapids Area Cedar Rapids Marion Rural Linn County Hiawatha 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 & Tipton Muscatine Area Muscatine Muscatine County Wilton Other Areas Clinton, Camanche & Fulton DeWitt Maquoketa, Preston & Bellevue Total Regional Starts

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 4 1 4 27 3 21 3 37 15 9 13 1,563

2017

2018

2019

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 7 5 12 32 8 21 3 42 26 7 9 1,360

8 6 2 335 115 123 82 15 188 48 0 1 16 16 107 73 17 2 1 4 1 6 21 7 14 241 54 84 51 25 23 4 247 77 10 88 37 20 11 4 32 4 27 1 39 17 11 11 1,163

6 6 0 270 84 103 70 13 142 44 0 0 15 20 63 62 7 14 18 2 1 2 6 2 10 311 111 118 35 27 17 3 148 60 5 30 36 9 8 0 28 11 14 3 45 11 31 3 1,012

% Change 2018 vs. 2019 -25% 0% -100% -19% -27% -16% -15% -13% -24% -8% 0% -100% -6% +25% -41% -15% -59% +600% +1700% -50% 0% -67% -71% -71% -29% +29% +106% +40% -31% +8% -26% -25% -40% -22% -50% -66% -3% -55% -27% -100% -13% +175% -48% +200% +15% -35% +182% -73% -13%

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

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Unpredictable weather and rising building costs combined to keep a damper on home building and sales in the 3rd quarter. As reported by our regional MLSs, third quarter unit sales were down by 34% vs. 2018, leaving the year-to-date figures down by 15%.

House sales were down 14%, while condo sales dropped by 16% through the end of September. New home starts were also down by 13%, as detailed in the chart to the left. Major market sales and inventory breakdowns are charted on page 6.

Trends in sales prices are shown below. YTD indicates September 30 of each year.

Houses YTD: Below $300K $300 - $400K Above $400K

2019 28% 38% 34%

2018 28% 39% 33%

2017 33% 38% 29%

Condos YTD: Below $200K $200 - $300K Above $300K

2019 34% 52% 14%

2018 20% 65% 15%

2017 37% 46% 17%

CEDAR RAPIDS: While Cedar Rapids new home sales are down 11%, Marion reports a 24% decrease and the 4 Quadrants/Hiawatha/Robins are down 4%. Only the College Community District area showed an increase - up 9%. Across the area, house sales were down 13% and condos down 7%. This market boasts the highest percentage of home sales below $300K at 51% and the lowest percentage above $400K at 10%.

Inventory levels are up about 5%, on average, but 2019 starts are down 19% YTD. The area’s existing to new home sales ratio is 10.1 to 1 vs. the regional average of 10.4 to 1.

DUBUQUE: Soaring condo sales, up 61% this year, helped offset a 29% decrease in house sales. Condo sales in the $225-$400K range are up 117%, while house sales above $400K have doubled. However, below $400K, house sales are down 44% YTD and condo sales below $225K are down 50%. Current inventory levels stand at 14 months for houses and 33 months for condos. Dubuque’s existing to new home sales ratio is 13.9 to 1.

IOWA CITY: The region’s most active new homes market is suffering as well, with a drop of 27% in unit sales: houses down by 22% and condos down by 32% YTD. Only the outlying areas have New Homes Sales Slow continued on page 8

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New Home Sales Slow continued from page 7

increased unit sales so far this year up 22%. Iowa City is down 35%, North Liberty fell 26% and Coralville/Tiffin is down by 15%. Inventory levels are also down in all but the outlying areas with the combined market down by 14% in available units (all of that being in fewer condos). Coralville/Tiffin saw 43% of the unit sales in the market and has 36% of the current inventory. Despite the lower sales figures, Iowa City still has

the region’s best existing to new home sales ratio at 6.0 to 1.

QUAD CITIES: In contrast to most of the rest of our region, this market has remained relatively stable with a 5% increase in unit sales in 2019. Inventory is 8% below last year’s level, with fewer condos available. While house sales $500-$700K are up 60%, condo sales above $300K are down 57%. Entry level houses under $225K, a recent introduction into the market, have just

begun to sell, but will likely impact some new condo and existing sales in the next quarter.

The entire region continues to experience more diversity in house styles, design and price points. This can only help stimulate new home sales in the coming months and years, and may put more pressure on owners of existing homes to better prepare their homes for sale in order to compete with new homes at lower price points.

Caroline Ruhl, CEO Chris Beason, President

RuhlHomes.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