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Facts & Trends Real Estate

Ruhl&Ruhl REALTORS

Fall 2013

Market Pauses Due to Uncertainty

Harry Blewett Realtor 563.542.1904 HarryBlewett@RuhlHomes.com HarryBlewett.Ruhlhomes.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 List­ing 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


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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.

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Harry Blewett Realtor 563.542.1904 HarryBlewett@RuhlHomes.com HarryBlewett.Ruhlhomes.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.

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Harry blewett