Home Sales up in December; Steady in 2011

CLIVE, IA (01/17/2012)(readMedia)-- The Iowa Association of Realtors® (IAR) reports that sales were up in December and steady throughout 2011. December marks the fifth consecutive month of increased activity.

According to IAR's 2011 December Housing Trends Report, the number of home sales increased by 6.8 percent, as 154 more homes sold last month than in December of 2010. The report shows that 2,430 homes sold/closed in December 2011, while 2,276 homes sold/closed in December 2010.

Prices last month were comparable to last year. Average prices were down just 1.8 percent or $2,452 from December 2010. The average sale price across the state was $135,496 in December 2011, and $137,948 in December 2010. The median sale price was down by 3 percent from last year. The median sale price in December 2011 was $116,350, while the median sale price in December 2010 was $119,900.

IAR also reports the statewide inventory at the end of the month was 19,208, which includes 2,400 new active residential listings. Inventory of homes for sale has been gradually decreasing in the past few months, says Dale Gross, president of the Iowa Association of Realtors®. The month's supply of inventory (MSI), which is the number of months it would take to clear the existing inventory from the market, was 7.4 months in December. "This MSI indicates it's getting close to being an even buyers/sellers market," explains Gross.

The average days on the market was 112 days, the same as it was last December. Twenty-six of Iowa's 44 local boards reported increases in number of sales last month, while 19 boards had increases in median sale price from last December. In addition, 26 boards showed a decrease in the average number of days on the market.

2011 IN REVIEW

"The increased activity in December was a nice way to wrap up the year," says Gross. "Overall, it was a good year, as sales and prices held pretty steady." Total year-to-date (YTD) sales across Iowa in 2011 were up 0.4 percent from 2010. YTD sales were 31,089 in 2011, and 30,954 in 2010.

IAR's Annual 2011 Housing Trends Report shows the average sale price was up 0.5 percent, although the median sale price was down 1.2 percent. The average sale price was $140,458 in 2011, and $139,791 in 2010. The median sale price was $122,000 in 2011, and $123,500 in 2010.

"When average price is up but median price is down, it indicates that there are a greater number of properties at the lower end of the price range, and that distressed properties may be pulling down the overall market price appreciation," explains Gross. "So, as more and more distressed properties move off of the market, we may see prices start to increase."

Gross reminds buyers and sellers that real estate is always local. "The IAR Housing Trend Report shows statewide averages, but there certainly are parts of the state that have seen greater fluctuations in prices as well as sales. We encourage people to contact a local Realtor® for more information on the market in their community," says Gross.

The information used to create the IAR December 2011 Housing Trends Report and the IAR Annual 2011 Housing Trends Report was current as of January 10 at 5:00 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.