Real Estate
Facts & Trends Ruhl&Ruhl Realtors
Fall 2022
Market Shifting Due To Rising Mortgage Rates 10% fewer properties sold across our region during the third quarter of 2022 compared to the third quarter of 2021. Recall that we are comparing today’s market to the best market ever in 2021 in terms of real estate sales.
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IN THIS ISSUE: page 2 Summary of Regional Real Estate Activity
page 2 Local Housing Prices Still Going Up
page 3 Demographics and Trends Fueling the Housing Market
page 4 Homeownership Changes Lives - Long Term Benefits of Homeownership
page 6 Iowa and Illinois Cropland Values Increasing
On average over the past five years homes in our region have appreciated over 30%. Nationally homes have appreciated 63.52%. We are blessed by our slow, steady appreciation year after year in our midwest markets. It is likely other markets where Because homes are still appreciating, sales appreciation went up so quickly, like in Florida, Denver and Seattle, will see volume was only down 1% during the third quarter, and year to date across our region depreciation. So when you hear the national media projecting home prices falling it isn’t sales volume is still up 6%. See the activity chart on page 2 for the significant variations in our safe, stable markets. from market to market. Zillow has projected that 618 MSA’s (Metropolitan Statistical Areas) in the country “The aim of Fed tightening is to curtail will experience home price appreciation in demand in an effort to tame inflation, and 2023 and 257 MSA’s will see depreciation. when it comes to the housing market, the Fed’s actions are working.” – Odeta Kushi, Active Listing Inventory Is Growing! Deputy Chief Economist, First American. Active listings available to purchase in our region increased 8% from second quarter to It just makes sense that as mortgage rates third quarter this year. “Fall is historically the have risen from 3% to 6.5% and climbing, time of the year when buyers have found that some buyers have paused due to the best market conditions to obtain more affordability and some sellers have bargaining power.” – Jiayi Zu, Economist, decided to stay put in their homes and retain their 2% - 3% mortgages. Basically it’s Realtor.com. Buyers will see less true that it costs more to buy a home today competition for homes and have more time than it did last year, but the same is true for to tour homes they like and consider their options. According to ShowingTime, renting. This means either way, a buyer or showing activity is down 8.5% in the renter is going to be paying more. The midwest, compared to 22.2% down in the difference is with homeownership, they south and 37% down in the west. are also gaining equity over time, which helps grow their net worth. The question Yet it is still a Seller’s Market, as defined by becomes “what makes more sense for months of inventory, which is less than four you?” months of inventory. Our activity chart on Homes Are Still Appreciating In Our page 2 shows months of inventory by market. Our tightest markets are: Markets! “The root issue of what drives house prices almost always is supply and demand…” – David Ramsey, Personal Finance Personality. Price declines are not expected in our markets given the ongoing supply and demand imbalance and continued strength in the labor market. (See appreciation rates in our various markets on page 2 and over five years on page 4.)
• Iowa Quad Cities 1.2 months of inventory • Illinois Quad Cities 1.3 months of inventory • Dubuque Area 1.8 months of inventory For buyers, that means you have more options but still need to be decisive. For sellers, you may have more competition, but you can still stand out if you work with a real estate agent to price your house right and condition it competitively.