Hot housing market shows few signs of cooling off

Iowa real estate activity remained fast-paced last month, eclipsing April 2020 in most categories according to the latest Housing Trends report from the Iowa Association of REALTORS (IAR).

The statewide median sales price rose 8.6% over April 2020, while total sales jumped a similar 8.4%.

Just over 3,750 homes sold in April 2021 with new properties coming on the market jumping 29.2% higher than new listings in April 2020. A total of 5,697 properties came on the market in April.

The median sales price for April 2021 came in at $190,000 compared to $174,930 in April of last year.

โ€œApril numbers continue to show how fast the market is moving right now,โ€ said IAR President Jen Burkamper in a release. โ€œSingle-family detached homes sold on average in 46 days. That is the fastest pace in the last nine years for single-family detached homes. We continue to see multiple offer situations driving sales prices above the asking price.โ€

The number of homes available for sale continues to be low in many price ranges. The IAR reported the stateโ€™s inventory was 31.2% lower than in April 2020, with only 9,161 homes on the market statewide.

Overall, Iowa homes spent about 50 days on the market, selling 25% faster than in April last year.

Sales were not quite as brisk in the Cedar Rapids and Iowa City metro markets, mainly due to a severe shortage of inventory.

In the Cedar Rapids area, closed sales of single-family homes were down 17.6% over April 2020, but just 158 homes were on the market โ€“  almost 63% fewer than this time last year. Cedar Rapids homes spent an average of 23 days on the market, almost 48% less than last year, and sold for a median price of $200,000, up 14.3% over April 2020.

Home sales rose in the Iowa City market, but by just 6.1%, lower than the statewide average. The area had 441 homes for sale, a 39.7% decrease over April 2020. Iowa City homes spent 54 days on the market, an 11.9% decline from a year ago, and sold for a median price of $280,000, up 8.2% over last year at this time.

โ€œMany are predicting the buyer demand to remain strong through the spring and summer,โ€ Ms. Burkamper said. โ€œWe are hopeful to see more homes available for buyers as building continues in many areas of Iowa and potential sellers take advantage of the strong demand.โ€