Indianola Iowa Housing Statistics
The National Association of REALTORS® (NAR) latest housing report shows existing-home sales jumped in March to their highest annual rate in 18 months. At the same time, unsold inventory dropped to a 4.6 month supply. With national inventory below the 5 month supply level, we continue to be in a seller’s market for homes that are priced correctly.
The statistics for the Indianola, Iowa real estate market, as of April 27, 2015, continue to show a decrease in supply, while houses that are listed and priced right - sell quickly.
Jan. 1 - April 27, 2015
#Listings List Price (Range) Average Price
Condos 12 $69,900 - $199,900 $113,547
Acreages 12 $176,000 - $1,185,000 $508,791
Residential 58 $45,000 - $579,900 $215,064
# Pending List Price (Range) Average Price
Condos 5 $85,900 - $218,500 $149,820
Acreages 11 $78,000 - $489,900 $258,681
Residential 49 $38,000 - $369,900 $201,334
Jan – April 27, 2015 Sold Price (Range) Average Price
Condos 8 $49,900 - $219,900 $149,000
Acreages 13 $78,000 - $489,900 $258,681
Residential 49 $38,000 – $369,900 $201,334
Comparing 2014 with 2015 Sales, during the first four months of the year we see that sales are relatively the same. The average price of residential homes sold has increased about 17% from the same time last year, while the price range has stayed steady. The majority of this price increase can be explained by the reduction in the number of lower priced homes and foreclosures.
Jan 1 – Apr 27, 2014
# Sold Sold Price (Range) Average Price
Condos 11 $49,900 - $219,900 $113,827
Acreages 10 $49,900 - $458,000 $238,185
Residential 43 $59,900 - $359,900 $171,713
Mortgage Interest rates remain historically low with an average commitment rate in March 2015 at 3.77%, up slightly from February’s 3.71%. Freddie Mac has tracked 30-Year Fixed-Rate Mortgage interest rates since 1971 and today’s rates are almost 4 points below April 1971 and are 14.68 points below the October 1981 rate of 18.45%.
As interest rates begin to rise, it is necessary for buyers to realize that purchasing power diminishes. As mortgage interest rise one percentage point, (3.75% to 4.75%) buying power is reduced by ten percent, when maintaining the same monthly payment amount. At the $200,000 price point this means the family is now only able to purchase a $180,000 home, a reduction of $20,000 in buying power.
Or, to look at it another way, with the same one percent increase in interest rates, the mortgage cost of owning that same $200,000 home increases by roughly $162 per month. Resources that could have been used by the family in other ways.
If your family is considering a change of location in the next 3 – 12 months, then acting sooner rather than later is highly recommended. Selling your existing home now and finding the home that will meet your family’s future needs allows you to lock in current mortgage interest rates and preserve future resources.
Sellers: To obtain an estimate of the value of your current home you can reach Terry at EXIT Realty North Star-ITown or by calling 515-962-5686.
Buyers: Call to schedule an appointment to review the process of financing, locating and purchasing your next home.
As always, when it comes to Real Estate: “Time is of the Essence.”