Corridor, Iowa home prices rise, sales decline in June

Average home prices in Iowa and the Cedar Rapids-Iowa City Corridor rose last month, but the number of houses sold fell when compared with data from June 2012.

The Cedar Rapids Area Association of Realtors reported 477 homes sold in the Cedar Rapids area last month, down from 511 in June 2012. The average sale price increased from $170,133 in June 2012 to $180,933 last month.

At the southern end of the Corridor, 451 homes were sold last month, down from 455 in June 2012, according to the Iowa City Area Association of Realtors. The average sale price rose to $221,935 in June compared with $208,505 in June 2012.

Statewide, a total of 3,746 homes were sold in June, down 7.3 percent from 4,039 homes sold  in June 2012. The average sale price was $169,648 last month, up from $160,647 in June 2012.

"Prices continue to rise, further indicating that the inventory levels are having an effect on the marketplace as sellers are able to command more for their homes,"said Don Marple, president of the Iowa Association of Realtors.

Average days on the market also continued to decrease, dropping 13 days to 83 days. The average days on the market in June 2012 was 96 days. Also, the statewide sold/list price ratio rose to 96.5 percent, a 0.6 percent increase from last year, revealing that sellers are selling their homes quite close to asking price.

Iowa's statewide inventory of homes on the market was down 10.3 percent from last year, although new active listings were up by 7.1 percent. The months' supply of inventory was 6.5 months, down 16.5 percent from last June.

"Average days on the market also continued to decrease, dropping 13 days to 83 days. The average days on the market in June 2012 was 96 days.

Iowa's statewide inventory of homes on the market was down 10.3 percent from last year, although new active listings were up by 7.1 percent.

"We still need more homes on the market for individuals out there who are looking and ready to buy," Marple said.

The interest rate 30-year mortgage rates fell to the lowest in three weeks, reducing borrowing costs for homebuyers as the residential-property market strengthens.

The average rate for a 30-year fixed mortgage dropped to 4.31 percent in the week that ended Thursday from 4.37 percent last week, according to McLean, Va.-based Freddie Mac. The average 15-year rate slipped to 3.39 percent from 3.41 percent.

Mortgage rates for 30-year loans have declined after jumping to the highest level in two years earlier this month on speculation the Fed will begin to pare its bond purchases.

Higher rates have pushed up borrowing costs for home buyers who are competing for a tighter inventory of properties.