Iowa Home Prices Remained Steady, Sales Continued to Slow

CLIVE, IA (09/16/2010)(readMedia)-- Home sale prices in Iowa remained steady in August while sales continued to slow, reports the Iowa Association of REALTORS® (IAR).

According to IAR's 2010 August Housing Trends Report, the average sale price of homes was down a mere .3 percent from last year, and down just .5 percent from last month. The average sale price in August was $143,954, which is still higher than months in the first half of 2010, when the average fluctuated in the $130,000's. The average sale price was $144,458 in August 2009 and $144,726 in July 2010.

IAR reports the number of homes sold in August was down 19.5 percent from last year. Despite the drop, August sales also represent a 7 percent increase from July of this year, which recorded low market activity. A total of 2,289 homes were sold in August 2010, while 2,844 homes sold in August 2009 and 2,140 homes sold in July 2010.

Days on the market remained at 97 days, the same as in July and down 2 days (2 percent) from last August. The last four months have recorded the longest stretch of the lowest number of days on the market in the past two years. Inventory also remains solid. The report revealed that 4,975 new active listings entered the market in August. In addition, every month in 2010 has had more than 4,500 new listings.

"Although prices are holding, we have experienced some sluggish sales in pockets of the state these past few months. However, we think it's important to look at the big picture, and surprisingly, year-to-date data shows that overall sales and prices are similar to last year," says Carey Jensen, president of the IAR. Year-to-date closed sales in 2010 still remain slightly higher than 2009, up 3.3 percent compared to last year at this time. "Pending sales in August indicate that closed sales in the next few months will likely remain relatively flat. So we are expecting the year to end with overall sales in the ballpark of last year's numbers." Similarly, year-to date-prices are holding steady, and are within $600 of 2009 numbers.

Seventeen of Iowa's 44 local boards reported increases in the average sale price of homes from last August, while 10 boards reported increases in the number of sales. In addition, 22 boards reported decreases in the number of days on the market compared to last year.

The information used to create the August 2010 Housing Trends report was current as of September 14 at 8:30 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. Boards not yet reflected in the statewide statistics include Burlington and Ft. Dodge.

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.