Page 1

Facts & Trends Real Estate

Ruhl&Ruhl Realtors

Fall 2016

High Demand for Affordable Homes

Steve Hart Realtor Bettendorf Office 1228 Middle Road Bettendorf, IA 52722 (563) 441-5020 SteveHart@RuhlHomes.com HartSellsHomes.com

IN THIS ISSUE: page 3 Six Fixes to Make Buyers Say Wow!

page 4 Home Prices Continue Appreciating in Our Region

page 6 Iowa Land Values Decrease 3.7%

page 7 New Homes Market Steadies Regionally

We continue to have a bifurcated market with strong demand for and low inventory of affordable homes for sale, but low demand for and 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 sampling of our markets: Months of Inventory Cedar Rapids Area Below $350,000 4.5 months Above $350,000 8.8 months Dubuque Area Below $350,000 3.7 months Above $350,000 14.2 months Illinois Quad Cities Below $300,000 4.6 months Above $300,000 20.7 months Iowa Quad Cities Below $450,000 3.2 months Above $450,000 16.5 months Iowa City Area Below $350,000 5.2 months Above $350,000 9.8 months So the market is still very active in our affordable price ranges and we need more inventory. But the market is slower in the upper price ranges and generally a buyer’s market. This means the timing is perfect for sellers in affordable homes to sell and to buy that pricier home they always wanted.

Affordable Homes Appreciating Appreciation in home values follows inventory and demand. The chart on page 4 shows appreciation in our various markets over the past 12 months and the past 5 years. Note that this is the average for all properties. Less expensive homes are appreciating faster due to strong demand and low inventory while more expensive homes are appreciating less or not at all due to excess inventory and low demand.

Market Slowing Down  7KHÂżUVWWKUHHTXDUWHUVRIKDYH been great in our region. See the Regional

Activity Chart on page 2 for data on sales growth compared to last year in eight of our markets and decline in four of our markets. According to Lawrence Yun, Chief Economist for National Association of Realtors (NAR), “healthy labor markets in most of the country should be creating a sustained demand for home purchases. However, there’s no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn’t picking up to tame price growth and replace what’s being quickly sold.� Lack of inventory in homes under $300,000 has slowed down our markets. According to NAR, pending home sales are down 1.7% in the Midwest compared to last year. We also think this fall’s crazy presidential election has caused uncertainty and pause, especially among prospective purchasers of our luxury homes.

The Good News - Mortgage Rates On October 13, mortgage rates with zero points were: 15-year Conventional Fixed.............2.750% 30-year Conventional Fixed.............3.500% FHA/VA 30-year Fixed.....................3.250% 5/1 ARM.............................................2.750% According to the Chief Economist for Freddie Mac, Sean Becketti, “in most markets, low mortgage rates have more than offset the rise in house prices, preserving homebuyer affordability for the typical household. Homeowners are also taking advantage of low rates and house price appreciation that is increasing their home equity.â€? Economists from Fannie Mae, Freddie Mac, NAR and MBA (Mortgage Bankers Association) all project rates to increase in 2017. The average of their respective SURMHFWLRQVLVLQWKHÂżUVWTXDUWHU up to 3.93% in the third quarter. If this happens, then buyers have more reason to buy now while rates are still amazingly low.


2016 Regional Real Estate Activity Through September

Average 2016 Sales Price

% Change in Average Sales Price from 2015

2016 Number Sold

% Change in Number Sold from 2015

$116,800 $176,400 $98,400 $173,100 $181,400 $182,000 $90,300 $118,300 $191,300 $222,000 $137,300 $130,100 $169,500

+6% +3% +7% +12% +6% -5% +7% -1% 0% +2% +1% +5% +4%

862 3,667 357 87 917 132 469 1,654 2,022 2,578 439 259 13,443

-9% +2% +4% -9% +6% +22% -14% 0% +16% +6% -3% -27% +2%

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 2016 Regional Total

2016 Sales Volume

% Change in Sales Volume from 2015

Active Listing Count 2016

$100,674,000 $646,720,500 $35,112,700 $15,062,000 $166,299,100 $24,022,400 $42,346,000 $195,718,000 $386,844,000 $572,368,900 $60,265,200 $33,687,300 $2,279,120,100

-4% +5% +11% +2% +12% +16% -8% -1% +15% +8% -2% -24% +6%

655 1,490 319 35 407 383 311 845 672 1,058 146 319 6,640

% Change in Active Listings from 2015

NA -31% -1% -5% -16% -8% +22% -8% -17% -11% -20% -9% -16%*

Months of Inventory

6.9 4.9 9.3 3.7 4.3 21.4 5.3 4.9 3.6 5.8 2.7 7.1

The merger of the Clinton MLS is causing some data to be suspect. The merger of the Burlington MLS has changed the counties we track. *Regional total % change in active listings is based on 2016 totals without Burlington Area (5,985) compared to 2015 totals without Burlington Area (7,132).

Summary of Regional Real Estate Activity Burlington Area Listing Inventory: There are 655 homes and condominiums listed for sale in Burlington, Iowa and the surrounding DUHD7KLVLVWKHÂżUVW\HDUZHKDYH WUDFNHGWKHHQWLUHÂżYHFRXQW\DUHD Properties Sold: 9% fewer residential properties sold year-to-date than the same time period last year, comparing 949 sales last year to 862 sales in the ÂżUVWWKUHHTXDUWHUVRIWKLV\HDU Average Sales Price: The average sales price was $116,800, a 6% increase from the average sales price of $110,500 LQWKHÂżUVWWKUHHTXDUWHUVRI Residential Sales Volume: Sales volume was down 4%, a decrease from $104,892,200 through September 2015 to $100,674,000 through September 2016.

Cedar Rapids Area Listing Inventory: There are 1,490 residential properties listed for sale in the Cedar Rapids Area, 31% fewer than the same time last year when there were 2,172 properties listed. Properties Sold: Through September this year, 3,667 properties sold, 2% more than the 3,583 that sold through September 2015. Average Sales Price: The average sales price was $176,400 through September 2016, 3% more than the average sales price of $171,700 through September 2015. Residential Sales Volume: Sales volume increased 5% from 2 • RuhlHomes.com

$615,239,500 through the third quarter of 2015 to $646,720,500 through the third quarter of 2016.

Clinton, Camanche & Fulton Listing Inventory: There are 1% fewer properties listed for sale in Clinton, Camanche and Fulton; comparing 319 current listings to 322 properties for sale last year. Properties Sold: 4% more properties sold through the third quarter of 2016, an increase from 342 sales in 2015 to 357 sales in 2016. Average Sales Price: The average sales price through September 2016 was $98,400, a 7% increase from the average sales price of $92,100 through September 2015. Residential Sales Volume: Sales volume was up 11% through September IURPLQWKHÂżUVW three quarters of 2015 to $35,112,700 in WKHÂżUVWWKUHHTXDUWHUVRI

DeWitt Listing Inventory: DeWitt’s listing inventory is down 5% from 37 properties listed for sale last year to 35 properties currently on the market. Properties Sold: 87 properties sold DQGFORVHGGXULQJWKH¿UVWWKUHH quarters of 2016, a 9% decrease compared to 96 sales in 2015. Average Sales Price: The average sales price of homes sold through September 2016 was $173,100, 12% more than year to date in 2015 when

the average sales price was $154,000. Residential Sales Volume: Sales volume increased 2% year to date in 2016, from $14,783,400 in 2015 to $15,062,000 in 2016.

Dubuque Area Listing Inventory: There are 407 residential properties listed for sale in the Dubuque Area; a 16% decrease from the same time last year when there were 484 properties for sale. Properties Sold: 6% more properties sold year-to-date in 2016; an increase from 866 closings through September 2015 to 917 closings through September 2016. Average Sales Price: The average sales price of homes sold through September 2016 was $181,400, a 6% increase over the average sales price of $171,400 through September 2015. Residential Sales Volume: Sales volume through September 2016 was $166,299,100, up 12% from the same period in 2015 when sales volume was $148,416,700.

Galena & Galena Territory Listing Inventory: There are 383 properties for sale in Galena, Illinois and the Galena Territory; 8% fewer than the same time last year when there were 416 listings. Properties Sold: There was a 22% increase in the number of residential SURSHUWLHVVROGLQWKHÂżUVWWKUHH Summary continued on page 3


Summary continued from page 2

quarters of 2016, comparing 108 sales in 2015 to 132 sales in 2016. Average Sales Price: The average sales price was $182,000 through September 2016, 5% less than last year when the average sales price was $191,000. Residential Sales Volume: Sales YROXPHZDVXSIRUWKHÂżUVWWKUHH quarters of 2016, an increase from $20,627,800 through September 2015 to $24,022,400 through September 2016.

Galesburg Area Listing Inventory: There are 311 residential properties currently listed for sale in the Galesburg Area an increase of 22% from last year when there were 254 properties for sale. Properties Sold: Sales have decreased 14% from 547 properties sold through the third quarter of 2015 to 469 through September 2016. Average Sales Price: The average sales price was $90,300 through September 2016, 7% more than the average sales price of $84,600 through September 2015. Residential Sales Volume: Sales volume decreased 8% in the third quarter of 2016, from $46,276,100 to $42,346,000.

Illinois Quad Cities Listing Inventory: The number of properties for sale in the Illinois Quad Cities is down 8%; from 915 listings last year to 845 listings currently on the market. Properties Sold: Through the third quarter of 2016, a comparable number of properties sold from 1,648 sales through September 2015 to 1,654 sales

through September 2016. Average Sales Price: The average sales price was down 1%, from $119,500 through September 2015 to $118,300 through September 2016. Residential Sales Volume: Sales volume decreased 1% through the third quarter of 2016, from $196,925,100 to $195,718,000.

Iowa Quad Cities Listing Inventory: There are 672 homes and condominiums listed for sale in the Iowa Quad Cities, 17% fewer than the same time last year when there were 806 properties for sale. Properties Sold: 16% more properties sold through the third quarter of 2016, an increase from 1,749 sales in 2015 to 2,022 sales this year. Average Sales Price: The average sales price remained consistent from $191,600 through September 2015 to $191,300 through September 2016. Residential Sales Volume: Sales volume went up 15% from $335,119,500 through the third quarter of 2015 to $386,844,000 through the third quarter of 2016.

Residential Sales Volume: Sales volume increased 8%, from $527,570,300 through September 2015 to $572,368,900 through September 2016.

Muscatine & Wilton Area Listing Inventory: There are 146 homes and condominiums listed for sale in the Muscatine and Wilton Area, 20% fewer than the same time last year when there were 182 properties for sale. Properties Sold: 3% fewer residential SURSHUWLHVVROGLQWKHÂżUVWWKUHH quarters of 2016, comparing 452 sales last year to 439 sales this year. Average Sales Price: The average sales price was $137,300, a 1% increase IURPWKHDYHUDJHVDOHVSULFHLQWKHÂżUVW three quarters of 2015 of $135,500. Residential Sales Volume: Sales volume was down 2%, from $61,242,500 through September 2015 to $60,265,200 through September 2016.

Southwest Wisconsin

Listing Inventory: There are 319 properties for sale in the Southwest Wisconsin region, a 9% decrease compared to the same time last year when there were 350 listings. Iowa City Area Properties Sold: There were 259 Listing Inventory: The number of properties sold through third quarter properties for sale in the Iowa City Area this year, which is 27% fewer than the is down 11%, a decrease from 1,194 in 356 properties that sold in 2015. Average Sales Price: The average 2015 to 1,058 currently on the market. Properties Sold: 6% more properties VDOHVSULFHZDVGXULQJWKHÂżUVW VROGGXULQJWKHÂżUVWWKUHHTXDUWHUVRI three quarters of 2016, 5% more than 2016, an increase from 2,436 sales in WKHÂżUVWWKUHHTXDUWHUVRIZKHQWKH 2015 to 2,578 sales in 2016. average sales price was $123,800. Average Sales Price: The average Residential Sales Volume: Sales sales price was $222,000; a 2% increase volume was down 24%, a decrease from IURPWKHÂżUVWWKUHHTXDUWHUVRIZKHQ $44,075,500 through September 2015 to the average sales price was $216,600. $33,687,300 through September 2016.

Six Fixes to Make Buyers Say Wow! Getting ready to sell your home is not an easy process. It involves decluttering, constantly cleaning for showings, and an endless list of things you were going to Âż[ÂłVRPHGD\´+HUHLVDOLVWRIVL[WKLQJV  \RXVKRXOGÂż[ULJKWDZD\WRUHDOO\JLYH your home the “wowâ€? factor. 1. Structural and Mechanical - They may not look wow, but buyers are impressed with a home that doesn’t need any major upgrades. They’re ORRNLQJIRUWKLQJVOLNHXSGDWHGURRÂżQJ air conditioning and heating systems, electrical panels and pipes, and if your home doesn’t have them, they’re

looking to you to pay for it. 2. Exterior and Landscaping - If your exterior isn’t appealing, a buyer won’t even want to take a look at what’s inside. Take the time to paint WKHRXWVLGH¿[EURNHQVLGLQJWULPWKH hedges, and pull weeds. 3. Cosmetic - You never know what the rooms will be used for, so now is the time to spruce up the inside with a fresh coat of paint. Choose neutral colors. 4. Kitchen - Simple upgrades like new hardware on the cabinets and a new tile backsplash behind the sink can make any kitchen look up-to-date.

If you’re ready to spend a little more money, then upgrade your appliances. 5. Bathrooms - Think clean when it comes to bathrooms. Give your bathrooms a deep clean, including the grout. 6. Flooring - Flooring can be another scary word when it comes to upgrades, but there are plenty of low cost options to choose from that still last years and can change the look and feel of your home. Learn more about the selling process, including expert tips, at RuhlHomes.com/SellersGuide. 6RXUFH,QPDQFRP

RuhlHomes.com • 3


Home Prices Continue Appreciating in Our Region Five-year home appreciation in our region was between 6.33% and 14.94% with all of our local Metropolitan Statistical Areas (MSAs) experiencing positive growth. Nationally, the quarter over quarter DSSUHFLDWLRQUDWHUHĂ€HFWVSDVW\HDUVÂś rate of appreciation. However, the month over month slowdown in growth has sparked a deeper analysis. Federal Housing Finance Agency (FHFA) Supervisory Economist Andrew Leventis says, “This (monthover-month growth) is a much more modest pace of appreciation than we’ve seen in some time and most likely Metropolitan Statistical Areas (MSAs)

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

UHĂ€HFWVDFFXPXODWHGSUHVVXUHVIURP VLJQLÂżFDQWO\UHGXFHGKRPHDIIRUGDELOLW\´ In the past year, home prices are up: 2.55% in Dubuque; 2.72% in Iowa City; 3.24% in the Quad Cities and 0.97% in Cedar Rapids. This compares to other cities: Des Moines up 5.01% and Chicago, IL up 3.75%. This data is provided by the FHFA for the second quarter of 2016. “Our region continues to show positive gains,â€? said Caroline Ruhl, president of 5XKO 5XKO5HDOWRUVÂł7KHWUHQGVUHĂ€HFW that investing in real estate in our region is a safe bet as we are insulated from the national highs and lows.â€?

Percent Change in House Prices 1 Year 5 Year

2016 2nd Quarter National Ranking of 259 MSAs*

+0.97%

+6.33%

244

+3.24%

+9.40%

173

+5.01%

+14.94%

108

+2.55% +2.72% +5.61%

+11.21% +12.08% +29.75%

206 199

Reg Through September 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 Realt DeWitt (Quad City Area Realtor Assoc.) Dubuque Area (Dubuque Board of Realtors) Dubuque North, South and West Dubuque Illinois Wisconsin

Galena & Galena Territory (Realtor Assoc. of North

Galesburg Area (Capital Area Association of Realto

Illinois Quad Cities (Quad City Area Realtor Assoc. Rock Island Milan & Rural Rock Island County Moline Coal Valley, Rural Moline, Miscellaneous

Information courtesy of Federal Housing Finance Agency (FHFA) for second quarter 2016. 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.

East Moline & Silvis Port Byron, Upper Rock Island County

Ruhl Farm&Land Agents Receive Top State Honors The Iowa Farm and Land Chapter #2 REALTORS Land Institute, an organization founded in 1944, awarded six honors to Realtors and Accredited Land Consultants (ALCs) across the state of Iowa during their dinner on September 13 in Coralville, Iowa. The Land Institute is focused on improving real estate professionals’ expertise in activities related to land; including land brokerage, agribusiness, land management, planning and developing, appraising, acquisition, land auctions, and other land specialty areas. Two members of the Ruhl Farm&Land team were recognized for their RXWVWDQGLQJZRUNLQWKH¿HOG(ULF Schlutz, ALC, was awarded Farm & Land Broker of the Year and Austin Mass, ALC, was named the Rising Star. Both were selected from a group of land professionals from across the state. Schultz leads Ruhl Farm&Land, which is a division of Ruhl&Ruhl Realtors. He works with other ALCs to provide services to land owners, for example, 4 • RuhlHomes.com

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

(ULF6FKOXW]$/&

$XVWLQ0DVV$/&

Northwest Iowa City

Ruhl&Ruhl Realtors (563) 299-4407

Ruhl&Ruhl Realtors (563) 288-2997

Northeast Iowa City

(ULF6FKOXW]#5XKO+RPHVFRP

$XVWLQ0DDV#5XKO+RPHVFRP

Southeast Iowa City

evaluating land value and soil quality, and connecting clients with land management and auction services. Maas was “humbled and honored� to receive the award. He said, “I enjoy my work every day whether I’m focusing on hunting ground, farm land or acreages. I love the people and the land.� Past Ruhl&Ruhl winners of the Farm & Land Broker of the Year include Dennis Stolk, ALC, and Ken Paper, ALC. More information can be found at RuhlLand.com.

Southwest Iowa City Corridor Area Miscellaneous Condominiums

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

Southwest Wisconsin - Grant & Lafayette Co. (S. C

7KLVUHSUHVHQWDWLRQLVEDVHGLQSDUWRQGDWDVXSSOLHGE\WKH5($/725$VVRFLDWL The merger of the Clinton MLS is causing some data to be suspect. The merger


gional Residential Real Estate Activity Current MLS Listings Realtors)

Realtors)

isbon, etc.

or Assoc.)

% of Active Listings

2016 Avg. Sales Price

2016 Sales Volume

2016 # Sold

% of Unit Sales

Sales/ List

655

$116,800

$100,674,000

862

95%

1,490

$176,400

$646,720,500

3,667

99%

2015 # Sold

2015 Avg. Sales Price

2015 Sales Volume

949

$110,500

$104,892,200

3,583

$171,700

$615,239,500

131

9%

174,600

53,254,300

305

8%

97%

286

170,600

48,801,700

164

11%

175,300

94,682,300

540

15%

98%

522

181,500

94,763,000

110

7%

149,600

51,897,800

347

10%

98%

345

154,700

53,383,300

93

6%

142,100

44,187,900

311

9%

98%

288

143,000

41,195,200

28

2%

245,300

17,419,000

71

2%

99%

72

250,600

18,040,200

155

10%

214,100

94,836,900

443

12%

99%

434

210,900

91,519,100

173

12%

157,900

51,618,300

327

9%

97%

353

167,800

59,228,000

207

14%

153,900

52,937,100

344

9%

97%

324

151,400

49,043,600

122

8%

318,600

63,398,900

199

5%

98%

221

292,600

64,656,700

307

21%

157,000

122,488,000

780

21%

101%

738

128,200

94,608,700

319

$98,400

$35,112,700

357

90%

342

$92,100

$31,503,900

35

$173,100

$15,062,000

87

96%

96

$154,000

$14,783,400

407

$181,400

$166,299,100

917

94%

866

$171,400

$148,416,700

268

66%

186,200

136,508,000

733

80%

95%

685

174,100

119,286,900

94

23%

156,300

22,816,200

146

16%

94%

130

160,900

20,912,800

38

9%

197,400

4,539,200

23

2%

90%

40

158,100

6,325,300

7

2%

162,400

2,435,700

15

2%

92%

11

172,000

1,891,700 $20,627,800

hwest IL)

383

$182,000

$24,022,400

132

85%

108

$191,000

ors)

311

$90,300

$42,346,000

469

93%

547

$84,600

$46,276,100

.)

845

$118,300

$195,718,000

1,654

96%

1,648

$119,500

$196,925,100

158

19%

91,000

29,314,700

322

20%

96%

264

96,100

25,382,300

75

9%

141,000

16,071,400

114

7%

97%

123

133,900

16,463,900

172

20%

115,600

43,218,600

374

23%

96%

397

114,700

45,553,800

51

6%

140,300

16,970,700

121

7%

96%

95

152,700

14,506,400

84

10%

99,400

19,970,400

201

12%

96%

184

101,700

18,716,200

42

5%

191,400

12,826,000

67

4%

94%

77

175,200

13,494,100

63

8%

109,100

11,672,800

107

6%

95%

97

109,000

10,568,800

129

15%

134,100

36,061,300

269

16%

96%

327

125,300

40,973,500

71

8%

121,700

9,612,100

79

5%

93%

84

134,100

11,266,100

672

$191,300

$386,844,000

2,022

98%

1,749

$191,600

$335,119,500

315

47%

144,100

149,762,300

1,039

51%

98%

876

145,500

127,454,300

154

23%

298,700

133,507,100

447

22%

99%

393

313,700

123,294,200

35

5%

197,200

14,395,800

73

4%

98%

75

162,900

12,220,400

53

8%

249,000

28,638,100

115

6%

98%

90

224,100

20,165,200

30

4%

243,300

22,630,900

93

5%

99%

80

231,900

18,553,100

28

4%

116,000

4,756,000

41

2%

96%

43

110,300

4,742,900

57

9%

154,900

33,153,800

214

10%

98%

192

149,400

28,689,400

1,058

tors)

Central Wis.)

$222,000

$572,368,900

2,578

98%

2,436

$216,600

$527,570,300

216

20%

266,300

162,437,500

610

24%

98%

604

263,800

159,316,800

67

6%

313,200

47,609,600

152

6%

98%

149

294,300

43,847,300

124

12%

308,300

88,489,400

287

11%

99%

261

294,700

76,929,400

35

3%

187,600

10,319,100

55

2%

97%

50

165,300

8,266,000

22

2%

143,400

8,462,900

59

2%

96%

45

153,100

6,890,300

68

7%

179,000

23,988,300

134

5%

97%

129

168,800

21,777,400

59

6%

295,600

25,718,200

87

3%

97%

74

289,600

21,431,200

146

14%

166,000

54,795,400

330

13%

98%

341

182,000

62,066,700

321

30%

34%

99%

783

162,300

127,045,200

96%

452

$135,500

$61,242,500 42,096,100

146

174,200

150,548,500

864

$137,300

$60,265,200

439

91

62%

135,000

39,288,700

291

66%

97%

312

134,900

2

1%

146,200

3,654,500

25

6%

94%

28

166,400

4,660,300

48

33%

141,400

14,285,800

101

23%

95%

94

122,600

11,521,800

5

4%

5%

98%

18

164,700

2,964,300

93%

356

$123,800

$44,075,500

319

138,000

3,036,200

22

$130,100

$33,687,300

259

LRQVRUWKHLU0XOWLSOH/LVWLQJ6HUYLFHV1HLWKHUWKH%RDUGVQRUWKHLU0/6JXDUDQWHHRULVLQDQ\ZD\UHVSRQVLEOHIRULWVDFFXUDF\'DWDPDLQWDLQHGE\WKH%RDUGVRUWKHLU0/6PD\QRWUHÀHFWDOOUHDOHVWDWHDFWLYLW\LQWKHPDUNHW r of the Burlington MLS has changed the counties we track.

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 9/30/14

Active Inventory 9/30/15

Active Inventory 9/30/16

% Change in Inventory from 2015

Sales 2014

Sales 2015

Sales 2016

% Change in Sales from 2015

161 108 53 65 46 19 5 2 3 118 76 42 264 150 114 613

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

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

+17% -16% +97% 0% -19% +50% -17% +33% -67% +15% +30% -17% 0% -9% +8% +6%

245 140 105 66 56 10 9 6 3 169 137 32 336 192 144 825

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

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

-2% -5% +1% +53% +48% +100% +100% +75% +200% -5% -3% -11% +13% +13% +13% +7%

Iowa Land Values Decrease 3.7% over Last 6 Months The Land Trends and Value Survey, presented by the Iowa Farm and Land Chapter #2 REALTORS Land Institute, reported a statewide average decrease of 3.7% in cropland values from the March 2016 to September 2016 time period. Combining this decrease with the 5% decrease reported in March 2015 indicates a statewide average decrease of 8.6% for the year from September 1, 2015 to September 1, 2016. This annual decrease remains consistent from what was reported in March. In our east central district, high quality cropland is selling at $9,524 per acre. Timber is selling at $2,116 per acre. All nine Iowa crop reporting districts showed a decrease in value from September 2015 to September 2016.

Our east central district posted a 4.3% decrease, less than the state average. The largest decrease was a 5.8% decrease in southwest Iowa. 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. Although land values continue to soften, interest rates are still favorable and farmers still have some cash on hand. There is limited land available for sale; however, investors are buying again. Most likely, the future will follow the trends of commodity prices “There is a decrease in land values across the state but it isn’t as drastic as some had anticipated,” said Eric

Schlutz, ALC, Realtor and Manager of the Ruhl&Ruhl Realtors Muscatine 2I¿FH³7KLVFRXOGSURYLGHPRUH opportunities for investors.” For the survey, participants are asked to estimate the average value of farmland as of September 1, 2016. These estimates are 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. For more information, and the price per acre of cropland in all nine Iowa districts, visit www.RuhlLand.com/Value.

A division of Ruhl&Ruhl Realtors

PART OF IOWA

East Central

HIGH QUALITY CROP LAND

MEDIUM QUALITY CROP LAND

LOW QUALITY CROP LAND

% CHANGE IN TILLABLE CROPLAND

$9,524/acre

$6,922/acre

$4,260/acre

-4.3%

NON-TILLABLE PASTURE

TIMBER

$2,661/acre $2,116/acre

)DUP/DQGYDOXHVLQ'ROODUV3HU$FUHIRU6HSWHPEHU

Quad Cities MLS Statistics - Iowa & Illinois Combined Through September Current MLS Listings Average Sales Price Total Sales Volume Total # of Sales YTD 6 • RuhlHomes.com

2012

2013

2014

2015

2016

1,842 $145,900 $438,962,200 3,009

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

% Change 2015 vs. 2016 -8.7% +1.2% +9.5% +8.2%


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 West Branch Williamsburg, Wellman & Kalona West Liberty Muscatine Area Muscatine Muscatine County Wilton Other Areas Clinton DeWitt Maquoketa, Preston & Bellevue Total Regional Starts

2013 2008

2014

2015

2016

17 15 2 402 187 141 56 18 282 86 2 1 25 15 153 104 11 11 7 19 1 2 24 1 28 618 78 130 190 42 174 4 303 120 39 74 50 8 11 1 23 2 18 3 19 3 5 11 1,768

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 11 324 128 24 132 33 3 4 0 33 10 16 7 34 11 9 14 1,411

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 4 297 98 17 104 64 2 8 4 28 9 18 1 30 9 10 11 1,391

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 8 270 111 13 72 60 5 5 4 27 3 21 3 37 15 9 13 1,568

% Change 2015 vs. 2016 -15% +69% -100% +3% -2% +4% +15% +28% +31% +59% -100% +167% +63% +56% +7% +86% +610% -56% +300% +50% 0% -22% +50% -50% -47% +23% +51% +15% +6% +37% +15% +100% -9% +13% -24% -31% -6% +150% -38% 0% -4% -67% +17% +200% +23% +67% -10% +18% +13%

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THE NEW & IMPROVED RUHLHOMES.COM Access the full RuhlHomes.com website anytime, anywhere. Phones • Tablets • Computers

New Homes Market Steadies Regionally Steady, if modest, growth in the regional new homes market has continued through the 3rd quarter of 2016. Area Multiple Listing Services (MLSs) have reported a sustained increase of 7% YTD. Both house and condo sales increased equally. At the same time, area inventories are 6% above this time last year, with house supply decreasing 5% while there are 22% more condos available. Both available inventory DQGVDOHV¿JXUHVYDU\JUHDWO\E\ORFDOHDV illustrated in detail in the chart on page 6. The average new house sales prices in our larger markets actually fell from $353,779 in 2015 to $350,724 YTD. New condo prices, conversely, rose from $212,983 last year to $239,610. The drop in average new house sales prices DFWXDOO\UHÀHFWVOHVVDFWLYLW\DERYH. However, overall prices seem to continue their upward trend, as shown by the breakdown in the following charts: Houses: YTD 2016 YTD 2015 Below $300K 39% 43% $300 - $400K 37% 35% Above $400K 24% 22% Condos: YTD 2016 YTD 2015 Below $200K 36% 58% $200 - $300K 46% 36% Above $300K 18% 6% Ranch style houses continue to be the regional preference, but more cost effective multi-level and 2-story plans continue their rise in popularity, especially on smaller urban lots. We feel this trend will need to grow if new home sales are to ULVHVLJQL¿FDQWO\DERYHWKHFXUUHQWOHYHORI 1 in every 10.5 home sales. Following is a brief summary of activity: CEDAR RAPIDS: Sales rebounded in the 3rd quarter, leaving YTD totals 2% below 2015. House sales were down 5% with condos up 1%. The 4 Quadrants segment saw sales drop 31% vs. 2015, while the Marion/Hiawatha/Robins area has experienced a 35% increase in sales. In the overall Cedar Rapids market, house inventory is down 16% while condo inventory is up 97% vs. the same time last year. DUBUQUE: While the market has maintained its 53% unit sales increase over a year ago, average new house sales prices are up 17% over last year, to $309K. Condo prices have dropped by 11%. Sales volume through 9/30/16 New Homes Market continued on page 8 RuhlHomes.com • 7


Corporate Relocation Center 5403 Victoria Avenue, Suite 100 Davenport, IA 52807 RETURN SERVICE REQUESTED

New Homes Market continued from page 7

has already exceeded all of 2015. While house inventory is down 19%, there is a 54 month current supply of new condos. IOWA CITY: Sales in the overall market were up 13% vs. 2015 with new house and condo sales both up that same amount. The sales increase has been accomplished with inventory levels unchanged from a year ago. Iowa City, itself, maintains the largest share of market sales and inventory

ZLWKQHZGHYHORSPHQWLQ7LI¿QGLVSOD\LQJ its anticipated strength, especially in condo sales (up 627%). The average price of a new houses in the area actually dropped 2% vs. 2015 to $370K while average condo prices rose 10% to $248K. QUAD CITIES: With relatively stable sales, the market has seen some shifts in inventory. There are 30% more available houses than last year, but 22% fewer condos. The average price of a new house

in Scott County fell from $427K last year to $403K YTD and average new condo prices rose from $243K to $279K. While representing a small percentage of QCA new home sales, the Rock Island County market has doubled YTD sales over 2015. NOW is a great time to begin the process of combining your dreams with the reality of today’s exciting plans and products. Take advantage of low interest rates and begin to live your dream… TODAY!

Looking for Something Flexible? Independent? Rewarding? Meaningful? Visit JoinTheRuhlTeam.com to see if a career in real estate is for you! Steve Hart Realtor Bettendorf Office 1228 Middle Road Bettendorf, IA 52722 (563) 441-5020 SteveHart@RuhlHomes.com HartSellsHomes.com

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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

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Steve Hart Facts and Trends Fall 2016  
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