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23
Cedar Rapids Real Estate Fall Update: Regional Markets Improving
Despite regional sales volume being down 1% in the first nine months, we are improving and definitely trending in the right direction! Sales Volume By Quarter Compared to 2013 1st 2nd 3rd Year-to-Date -9% -2% +4% -1% There is considerable variation from market to market - six of our markets are down year to date and seven of our markets are up. Overall, the Cedar Rapids market is down 7% in sales volume.
At look at regional real estate trends January 31, 2014 through September 30, 2014. What's Happening in our Markets 1) "Sluggishness in the general economy with lower than expected job growth, stagnant household income and tight credit conditions are taking the expected toll on housing sales," said Steve Murray, editor of the REAL Trends Housing Market Report. 2) First-time home purchases are at historic lows. They have accounted for only 28% of existing home sales year to date, according to the National Association of Realtors. This is six percentage points below the 5-year average. The economic slowdown has been especially tough on 24-35 year olds. Many recent college graduates have crushing levels of student debt and are frustrated with the challenging job market. Additionally, FHA fees and premiums have increased, hurting buyers' ability to qualify for loans. Thankfully both Iowa and Illinois offer attractive first-time buyer bond programs. None the less, Ruhl&Ruhl's first-time buyers only account for 24% of our total buyers, down from 26% last year. 3) It is tougher to get a mortgage. In recent testimony before Congress, Federal Reserve chairwoman Janet Yellen stated: "It has now become the case that any borrower without a pretty pristine credit rating finds it awfully hard to get a mortgage." 4) Slow but steady climb in home price appreciation in our markets. Our markets have been insulated from the extreme highs and lows. 5) Good inventory and homes for sale. Months of inventory is a good way to measure the strength of a market. Cedar Rapids currently has 6 months of inventory and is a balanced market, which favors neither the buyer, nor the seller. All of our markets are shown below. Cedar Rapids Area Listing Inventory: There are 1,865 residential properties for sale in the Cedar Rapids area; 7% fewer than the same time last year when there were 2,002 properties listed. Properties Sold: Through September this year, 3,064 properties sold and closed, 3% less than the 3,171 that were sold through September 2013. Average Sales Price: The average sales price was $163,200, 3% less than the average sales price of $168,700 through September 2013. Residential Sales Volume: Sales volume decreased 7%, from $535,086,100 through September 2013 to $499,978,900 through September 2014.
