Home prices in Iowa rose nearly six percent last month compared to August of 2014. That’s according to a new report from the Iowa Association of Realtors. IAR president Jon Yocum of Davenport says the increase in prices isn’t the only good news for sellers.
“Our time on the market is down, so we’re seeing homes sell much quicker,” Yocum said. The average time on the market for Iowa homes sold in August was just 63 days, the lowest level in five years. Yocum credit low inventory levels across much of the state.
The median price of a home sold last month was $146,000. That’s up from $138,000 in August of last year. Despite the rising prices, Yocum believes it’s good time for buyers entering the market because interest rates on a 30-year mortgage are still hovering around four-percent.
“I know there were reports earlier in the year and last spring that, in the third and fourth quarter, we were going to have increases in our mortgage interest rates. Well, that hasn’t come to fruition yet,” Yocum said. The number of homes sold in Iowa last month dropped 7.8 percent compared to August of last year, but Yocum says it’s typically a slow month for sales because families are getting ready for the return to school.
“So, the emphasis on buying a home dropped a little bit. But, I don’t think it was enough of a drop to change anything and I think you’re going to see a big increase in September,” Yocum said. Over the first eight months of this year, the number of homes sold in Iowa is up 7.6 percent compared to the same period last year.