Iowa Home Sales Slowed in July, 2010 Sales Still Strong

CLIVE, IA (08/18/2010)(readMedia)-- – Iowa home sales slowed in July and prices held steady, according to the Iowa Association of REALTORS® (IAR). Year-to-date sales in 2010 still remain higher than 2009.

The IAR's 2010 July Housing Trends Report revealed a 43.8 percent decrease in the number of homes sold compared to last year at this time, and a 50.7 percent drop since June of this year. A total of 2,102 homes were sold in July 2010, while 3,743 homes sold in July 2009 and 4,261 homes sold in June 2010.

According to the IAR, there is some good news when looking at the year-to-date sales numbers. "Despite the slow down in sales last month, year-to-date sales are still higher than last year at this time," says Carey Jensen, president of the IAR. "The net benefit is about 1,000 more homes sold this year compared to last year." Year-to-date sales are 18,814 in 2010 and 17,859 in 2009.

Average sale prices held steady in July, down just 1 percent from last July, and down 4.5 percent from June 2010. The average sale price of homes in Iowa was $145,658 in July 2010. The average sale price was $147,194 in July 2009 and $152,584 in June 2010. Year-to-date prices have also held steady, within $1,000 of 2009 year-to-date prices.

"We expected to see some decline in sales due to the home buyer tax credit deadline in June," says Jensen. "The deadline likely helped to rearrange sales – moving potential later summer sales and packing them all into May and June."

IAR reports that in May and June when sales were at record highs, pending sales were low. "Now we're seeing the results of low pending sales in the previous two months, as the market is correcting itself," says Jensen. "We're hoping that August gets back on track with the slight upward trending we've seen most of the year, and that the incredibly low interest rates will encourage home buyers to get in the market."

Homes spent an average of 97 days on the market in July, down seven days or 6.7 percent from July 2009, but up four days or 4.3 percent from June of this year.

Twenty-two boards reported increases in the average sale price of homes from last July. In addition, 33 boards reported decreases in the number of days on the market when compared to last year at this time.

The information used to create the July 2010 Housing Trends report was current as of August 16 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.