The president of the Iowa Association of Realtors says homes sales in August were as hot as the weather. Don Marple tracks the sales from members across the state. “The average sale price has gone up about 7.8-percent, it’s been a big increase to about $161,000 compared to $151,000 last year at this time,” Marple says.
He says competition has made it a good market for those who are selling their homes. “I think the prices are driving up because there’s not as many homes on the market — we’ve got low inventory — and that supply and demand factor is just pushing those prices up,” Marple says. He says the interest rates have gone up but are still great rates to be buying right now.
Marple says the slight increase in interest rates has made a lot of people who were considering a home purchase move ahead for fear the rates will go up again. “It’s been pushing the increases in sales that’s for sure and lowering our days on the market. Right now we’ve dropped almost 27-percent in regards to days on the market — down to 75 as compared to 98 just a year ago today,” Marple says.
Housing supplies remain tight even though Marple says homebuilders are trying to fill the supply. “The new home builders are getting back in the market….I’ve got an area on the eastern Iowa right now that is putting up 10 homes a week, that’s how fast they are trying to work they are digging holes that fast to try and keep up with the market. And the rest of the state is trying to keep up with new construction,” Marple explains.
Overall sales were up 3.7-percent from August of 2012, with 3,875 homes sold in the month.