440 Active Listings
39 Homes Under Contract
3 Homes Sold November 22 - November 27, 2010
~ 1128 Foster Rd - List Price $128,400 - Sold Price $123,000 - 179 days on market ~
~ 908 Willow St - List Price $164,900 - Sold Price $164,900 - 85 days on market ~
~ 313 Windsor Dr - List Price $198,500 - Sold Price $197,500 - 67 days on market ~
This is a snapshot of the Iowa City real estate market November 29, 2010. 2 single family homes and 1 condo sold last week. I think the take away from these stats is that homes sell nearer the asking price when they haven't spent too much time on the market. Not exactly a new revelation, but certainly something that buyers and sellers have an easier time understanding when they see actual data.
The absorption rate for Iowa City is 6.8 months. This is the time it takes for the market to "absorb" homes. The first step in calculating the absorption rate is to find out how many homes sold in the past 12 months and how many are currently on the market. 773 homes sold in the last 12 months in Iowa City and there are currently 440 showing as active listings.
773/440 = 1.75 - That means the inventory of homes in Iowa City turned 1.75 times in the last 12 months.
Now we take the 12 months and divide it by 1.75 to come up with the absorption rate.
12/1.75 = 6.8 months = 207 days on market
What the absorption rate tells us that based on the current inventory the average time it takes a home to sell is 7.0 months. Calculating the absorption rate is just another way to get an indication of what's happening in the Iowa City market. It's not an exact science, it just gives us something to go on.
Last Week's Weekly Market Update for Iowa City
Originally posted @ ichomesforsale.com