Facts & Trends Real Estate
Ruhl&Ruhl REALTORS
Spring 2014
Home Prices Rising In Our Markets
Greg Rediger Realtor, CRS (563) 441-5050
gregrediger@ruhlhomes.com
GregRediger.com
IN THIS ISSUE: page 3
Ruhl&Ruhl Realtors Ranked Iowa’s Largest
page 4
Iowa Farmland Value Decreases, but Demand Stays Strong
page 6
Ruhl&Ruhl Launches New Farm and Land Website, RuhlLand.com
page 7
New Home Sales Show Modest Increase Under Harsh Conditions
In the past year, home prices have risen in most of our markets. See the percent change by market on page 4, as reported by the Federal Housing Finance Agency (FHFA). The increases have been driven by declining inventory and pent up buyer demand. The Regional Real Estate Activity Chart on page 2 also shows the percent change in average sales price comparing first quarter of 2014 to first quarter of 2013. There is tremendous variation from market to market in our region. The Iowa City Area has the highest average sales price of $209,700, and the Burlington Area has the lowest at $88,900.
Great Time to Sell
After a sluggish first quarter due to record breaking cold and snowfall, buyers are active and eager to buy before interest rates go up. Activity in some of our markets is being held back by a shortage of listing inventory. We consider a buyer’s market to be more than 6 months of inventory, a seller’s market to be up to 3 months of inventory and a balanced market to be 4-6 months of inventory. The following is a sampling of our markets’ months of inventory, which we show for all markets in the activity chart on page 2. Months of Inventory Burlington Area 5.6 months Cedar Rapids Area 4.6 months Dubuque Area 4.4 months Illinois Quad Cities 4.2 months Iowa Quad Cities 2.9 months Iowa City Area 8.2 months Muscatine/Wilton Area 4.4 months Homes are selling faster than they are coming on the market. So for sellers waiting for the “best time to list their properties,” the time is right.
Interest Rates Attractive
Interest rates are still at historically low levels.
As of April 17, conventional 30-year fixed rates are around 4.375%, 15-year fixed are still a great value at 3.5%, and VA/FHA is approximately 4.25%. Adjustable Rate Mortgages (ARMs) are becoming popular again, particularly for buyers not planning to live in their homes for more than 5-7 years. The 5-year ARM is remaining around 3.0% and the 7-year ARM is about 3.375%. Credit requirements remain somewhat strict and are more problematic than interest rates.
Burlington Area
Listing Inventory: There are 221 properties for sale in Burlington, Iowa and the surrounding area, a 5% decrease from the same time last year when there were 233 properties for sale. Properties Sold: There was an 8% decrease in the number of residential properties sold in 2014, comparing 105 sales in 2013 to 97 sales in 2014. Average Sales Price: The average sales price was $88,900 in 2014, 11% lower than the 2013 average sales price of $100,200. Residential Sales Volume: Sales volume was down 19% in the area, a decrease from $10,532,400 in 2013 to $8,495,600 in 2014.
Cedar Rapids Area
Listing Inventory: There are 1,669 residential properties listed for sale in the Cedar Rapids area, a 7% decrease from the same time last year when there was 1,788 properties for sale. Properties Sold: Through March this year, 593 properties sold and closed, 17% less than the 713 that were sold through March 2013. Average Sales Price: The average sales price was $157,600 through March 2014, 2% less than the average sales price of
Home Prices Rising continued on page 2 RuhlHomes.com • 1