Home Prices Continued to Rise and Sales Remained Steady in March

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Shrinking inventory has resulted in higher sales prices. The percent of original price received at sale (SP/LP comparison) shows that sellers are receiving offers that are closer to the asking price.

CLIVE, IA (04/12/2013)(readMedia)-- Homes prices continued to rise and sales remained steady last month, according to the Iowa Association of Realtors® (IAR).

The IAR's March 2013 Housing Trends Report shows the median price across Iowa increased by 5.9 percent, climbing from $118,000 in March 2012 to $125,000 in March 2013. Similarly, the average sale price increased 4.4 percent. The average sale price was $138,265 last March and $144,372 this March.

Sales across the state increased by 0.7 percent with just 18 more homes selling last month than last March. The total number of homes that sold/closed was 2,672 in March 2013 and 2,654 in March 2012.

Average days on the market dropped by a substantial 13 days from 120 days last March to just 107 days this March.

In addition, the statewide sold/list price ratio rose to 95.3, up 0.7 percent from last year, indicating that sellers are selling their homes close to asking price.

"We've been saying for months that the market is doing quite well here in Iowa," says Don Marple, president of the Iowa Association of Realtors®. "Fortunately we didn't see the extreme highs or lows in prices or sales that other areas of the nation experienced in the past few challenging years. We held pretty steady and continue to do so, often even better than steady. I think it's reassuring for consumers to know that there is stability in our market, and the data indicates that buyers and sellers are feeling more and more confident about the situation across the state."

Iowa's statewide inventory of homes on the market was down 12.6 percent from last year and new active listings decreased by 16.2 percent. The months supply of inventory (MSI) was 6 months, down 20.4 percent from last year, setting us at an approximately even buyer/seller market, says Marple. "The biggest challenge in the market currently is that we need more homes available for interested and qualified buyers. We encourage anyone interested in selling their home to meet with a local Realtor® to discuss the benefits of listing at this time."

March closed out the first quarter (Q1) of 2013, which illustrated more good news for Iowa, says Marple. According to the IAR, the average sale price, median sale price, number of homes sold/closed, number of new pending sales, and the average sold price/list price ratio were all up in Q1 2013 when compared to the first quarter of the past two years. Also, days on the market were down in Q1 2013 compared to the first quarter of 2012 and 2011.

Marple adds that more than 60 Iowa Realtors® will join thousands of Realtors® from across the nation in Washington D.C. in May. The leaders will visit with national legislators about important homeownership issues and legislation in our continual efforts to protect private property rights.

The information used to create the IAR March 2012 Housing Trends Report was current as of April 11 at 4:00 p.m. The information is subject to change due to the dynamic nature of the IAR's housing statistics system, which is updated hourly based on information present in local participating MLS (multiple listing service) systems.

The term Realtor® is a registered trademark, which identifies real estate professionals who follow a strict Code of Ethics as members of the National Association of Realtors®. This year marks the 100th Anniversary of the Code, which was the second of its kind when it was established back in 1913.

The Iowa Association of Realtors® is the state's largest real estate professional organization representing nearly 6,200 members and affiliates. The IAR releases a Housing Trends Report each month. Data is collected from local Realtor® boards through their multiple listing service (MLS), which tracks sales activities in the board area. The IAR compiles all of the local board data into the statewide report each month. Reports are available online to IAR members and affiliates with a login and password. Anyone is eligible to become an IAR affiliate. For membership information, visit www.iowarealtors.com.