Home Prices Up, Sales Dipped Slightly in February

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Average and median price rose significantly in February 2013. The sold price/list price ratio was up, indicating that sellers are receiving offers that are close to the asking price of a property.

CLIVE, IA (03/15/2013)(readMedia)-- According to the Iowa Association of Realtors® (IAR) home prices were up substantially in February, while sales dipped slightly.

In its February 2013 Housing Trends Report, IAR reports the median sale price jumped 12.9 percent and the average sale price was up 11.0 percent. The median sale price was $118,000 in February 2013 and $104,500 in February 2012. The average sale price was $141,326 in February 2013 and $127,264 in February 2012. Twenty-six of the 44 local Realtor® boards in the state reported increases in the median sale price, and 28 had increases in average sale price last month. In addition, the sold/list price ratio rose to 94.6, up 1.3 percent from last year.

Sales across the state dropped 2.9 percent from last year at this time with just 55 more homes sold in February 2012 than last month. The report shows that 1,851 homes sold/closed in February 2013 and 1,906 homes sold/closed in February 2012. Twenty-one boards had increases in sales last month.

The statewide inventory of homes on the market at the end of the month was 17,434, which includes 3,989 new active residential listings. The month's supply of inventory (MSI) in February 2013 was 5.9 months, down 18.5 percent from February 2012 when the supply was 7.3 months.

The average days on the market was 104 days, down nine days or 9.6 percent from last February. Thirty local boards had decreases in average days on the market.

"Both median and average sale prices rose significantly in February, likely due to reduced inventory levels," says Don Marple, president of the Iowa Association of Realtors®. He added that the increased sold price/list price ratio indicates that sellers are receiving offers that are close to asking price.

"Although sales were down slightly in February, overall, year-to-date sales in 2013 are still up 6.7 percent compared to the number of sales for the first two months of 2012." The numerous winter storms this year and the low inventory may be factors in the decline, says Marple. "When it's snowy and the roads are slick, people often stay home and wait for warmer weather to go house hunting," he explained. "Also, inventory is very low right now across the state. We need more homes on the market to meet the buyers' demand," adds Marple. He encourages sellers who may be on the fence to contact a local Realtor® to consider listing their home this spring.

The information used to create the IAR February 2013 Housing Trends Report was current as of March 14 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®. The Iowa Association of Realtors® is the state's largest real estate professional organization representing more than 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.