Home Prices up in December, Sales and Prices Up in 2012

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The Comparison Graph description is at the end of the release.

CLIVE, IA (01/15/2013)(readMedia)-- The Iowa Association of Realtors® (IAR) reports home prices were up significantly in December compared to last December, while sales held fairly steady.

According to the IAR's December 2012 Housing Trends Report, the median sale price increased by 7.8 percent. The median sale price was $125,000 in December 2012, and $116,000 in December 2011. The average sale price was also up, increasing by 11.6 percent. The average sale price in December 2012 was $149,946, while the average sale price in December 2011 was $134,332. Thirty-three of the 44 local Realtor® boards in the state reported increases in the median sale price in December, and 30 had increases in average sale price.

The number of sales also inched up by 0.8 percent from last year at this time. This increase is represented by 21 more homes selling last month than in December 2011. The report shows that 2,512 homes sold/closed in December 2012, and 2,491 homes sold/closed in December 2011. Twenty-five boards had increases in sales last month.

The statewide inventory of homes on the market at the end of the month was 17,630, which includes 2,277 new active residential listings. The month's supply of inventory in December was 6.1 months, down 18 percent from December 2011. Six months' supply represents an even buyer/seller market. The average days on the market was 97 days, down nine days or 8.5 percent from last December. Twenty-seven local boards had decreases in average days on the market.

2012 in Review

IAR also reports that annual sales and prices were both up in 2012 overall. IAR's Annual 2012 Housing Trends Report shows that sales increased by a substantial 12 percent. There were 34,860 homes sold across the state in 2012, and 31,114 homes sold in 2011.

The median sale price went up by 4.1 percent or $5,000 last year. The median sale price was $121,000 in 2011 and $126,000 in 2012. The average sale price also increased, jumping 5.6 percent or $7,891 from $139,773 in 2011 to $147,664 in 2012.

"2012 was a very good year for the housing market and economic improvement in Iowa," says Don Marple, president of the IAR. "2012 sales were the highest annual sales since 2007. Similarly, the median sale price and average sale price in 2012 were the highest since we started keeping comprehensive statewide records in 2005. These are pretty significant indicators that the market is on the upswing. The year end statistics give us hope for continued positive activity in 2013."

Marple reminds buyers and sellers that real estate is local and to contact a local Realtor® for more information on the market in their community.

The information used to create the IAR December 2012 Housing Trends Report and the IAR Annual 2012 Housing Trends Report was current as of January 14 at 11:00 a.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.

Captions

Market Arrow Graph:

The Iowa housing market continued its recovery in December. While the number of December 2012 closed sales was only slightly ahead of the number of sales at this time last year, median prices and inventory showed a healthy 7.8 percent increase and 8.2 percent decrease, respectively. Increasing prices and decreasing inventory levels have been prevalent in Iowa throughout 2012, leading to a neutral buyer/seller marketplace across the state. Some areas of the state have even passed into seller's market territory as inventory levels continue to decrease.

Recession Graph:

The trailing twelve months (TTM) graph provides an indication of the direction of the market, in terms of closed sales, over the last 12 months. Comparing the historical TTM average with periods of recession and housing stimulus indicates that housing stimulus programs were an effective means to mitigate the effects of the recession on the Iowa housing market. While the TTM average indicates that the "bottom" for the Iowa real estate market occurred around June 2011, it is likely that the true "bottom" for the market occurred sometime in the summer or early fall of 2010 – after the expiration of housing stimulus programs. Note that the TTM average also shows that the Iowa housing market has seen consistent improvement for 18 consecutive months, indicating a sustained recovery of the Iowa housing market.

Comparison Graph:

A housing recovery requires both an increasing number of closed sales and increasing sales prices. While the Iowa housing market showed a slight increase in sales in 2011, prices were still falling. High inventory levels in 2011 contributed to falling prices as buyers had much of the bargaining power. However, this trend reversed in 2012, and as inventory fell prices started to improve as sellers regained bargaining power. Closed sales and prices both rebounded significantly in 2012, further indicating a sustained recovery of the Iowa housing market.