Iowa Home Prices Increased; Sales Decreased in June

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Listing activity in the 2nd quarter of 2013 outpaced the activity from one year ago, despite the current low inventory levels statewide.

CLIVE, IA (07/16/2013)(readMedia)-- Home prices continued to climb while sales decreased last month in Iowa, reports the Iowa Association of Realtors® (IAR).

According to the IAR's June 2013 Housing Trends Report, the median sale price across the state increased by 6.7 percent, climbing from $137,900 in June of last year to $147,125 this June. The average sale price also increased by 5.6 percent, jumping from $160,647 last June to $169,648 in June 2013.

"Prices are continuing to rise, further indicating that the inventory levels are having an effect on the marketplace as sellers are able to command more for their homes," says Don Marple, president of the Iowa Association of Realtors®. "June 2013 represents the sixteenth consecutive month that the median sale price has increased year-over-year."

Sold activity was down in June 2013 when compared to the number of sold properties in June 2012. Sales decreased by 7.3 percent from last year. A total of 4,039 homes sold/closed in June 2012, and 3,746 homes sold/closed in June 2013.

"Realtors® across the state are reporting a tight inventory of homes for sale, which may account for some of the decline in year-over-year sales," says Marple. "However, the number of sales did increase overall in the second quarter of 2013, and the year-to-date number of sales continues to remain ahead of 2012 year-to-date sales by 5.5 percent," he explains.

Average days on the market also continued to decrease, dropping 13 days to 83 days. The average days on the market in June 2012 was 96 days. Also, the statewide sold/list price ratio rose to 96.5 percent, a 0.6 percent increase from last year, revealing that sellers are selling their homes quite close to asking price.

Iowa's statewide inventory of homes on the market was down 10.3 percent from last year, although new active listings were up by 7.1 percent. The months' supply of inventory (MSI) was 6.5 months, down 16.5 percent from last June. "We still need more homes on the market for individuals out there who are looking and are ready to buy," says Marple. IAR encourages Iowans that may be considering selling their home to meet with a local Realtor® to discuss the benefits of listing at this time, adds Marple.

IAR reports a strong second quarter (Q2) with increases in new active listings, new pending listings, new sold listings and prices when compared to Q2 of the past two years. New active listings in Q2 of 2013 totaled 17,699, new pending listings were 11,573, and homes sold/closed tallied 10,777.

Prices in Q2 of 2013 also showed a clear increase from both 2011 and 2012. The median sale price of homes across Iowa in Q2 of 2013 was $138,000 and the average sale price was $160,274. The median sale price was $130,500 in Q2 of 2012, and $124,950 in Q2 of 2011. Average sale price was $153,359 in Q2 of 2012, and $142,259 in Q2 of 2011.

Marple adds that right now the Iowa Association of Realtors® and the National Association of Realtors® are reaching out to Congress to urge them not to harm homeownership as they tackle tax reform. Leaders of both associations continually visit with national legislators about the importance of homeownership to our communities and our economy.

The information used to create the IAR June 2012 Housing Trends Report was current as of July 14 at 1:00 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.