Home Sales and Prices Up in May

CLIVE, IA (06/24/2011)(readMedia)-- Homes sales and prices were up in May, reports the Iowa Association of REALTORS® (IAR).

According to the IAR's May 2011 Housing Trends Report, the number of home sales in Iowa increased by 14.1 percent, while the average sale price of homes was up 6.4 percent from April of this year. Also, the average number of days on the market was down by 7 days or 6 percent since last month. IAR reports 2,873 homes sold in May while 2,519 homes sold in April of this year. The average sale price of homes was $141,942 in May and $133,418 in April. Average number of days on the market was 110 in May and 117 in April.

May statewide data also shows a small uptick in many market areas from last year at this time. May 2011 prices were up 2.9 percent and pending sales were up 5.6 percent from May 2010. One area that showed a decrease was the number of sales, which was down 23.6 percent from last May.

"Real estate is completely local. The IAR Housing Trend Report shows statewide averages, but there are parts of the state that have experienced fluctuations in prices and sales. Interested buyers and sellers should contact a local REALTOR® for more information on the market in their community," says Kurt Schade, president of the IAR. "Rent prices as well as interest rates are starting to inch up, so qualified buyers may want to enter the market now to take advantage of the solid inventory of homes, moderate prices and low interest rates," adds Schade.

IAR also analyzed sale prices throughout the last decade from 2001-2011. IAR reports a 19.8 percent increase in prices in the past 10 years, with 0.8 percent growth in the last five years, despite the significant economic challenges of the past few years. "When we have discussions about sales and prices perhaps not being as strong as we'd like, it's important to remember that Iowa did not have the huge fluctuations of 40-50 percent growth or 40-50 percent drops that we saw in other part of the nation," Schade explains. "Overall, Iowa's housing market has held fairly steady with mild to moderate growth. We have every reason to hope that we will continue a mild to moderate upward trend over time here in Iowa."

Twenty-three of Iowa's 44 local boards reported increases in average sale price, while nine boards had increases in the number of sales from May 2010. Nineteen boards showed a decrease in the average number of days on the market.

The information used to create the May 2011 Housing Trends report was current as of June 13 at 2:00 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 7,000 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.