Wow! What a year 2022 was for the Iowa real estate market! The first half of the year was unbelievably competitive while mortgage interest rates were still historically low. The market became a little more regular in the last half of the year. It was quite a ride! Overall, the YTD numbers are quite impressive, demonstrating just how strong (and crazy) of a year it was!
A LOOK BACK ON THE 2022 MARKET IN IOWA
- Due to the extreme demand the first half of the year, the average sales price to list price ratio was unusually high at 100% (it is typically around 98%).
- The average sales price increased by $21,000 in 2022, compared to a $15,000 increase in 2021.
- The average days on market saw a notable decrease to 46 days, in comparison to 52 days in 2021.
- There were 210 fewer homes sold last year than in 2021, which was one of the driving forces of the very competitive market (4,101 in 2021 versus 3,891 last year).
The market conditions of 2022 will be hard to recreate this year, especially with interest rates a little higher. That’s okay though! The market had to calm down, and we think it will return to more of its “normal” state. This means there should be opportunities to both buy and sell in the coming year. The Iowa City area real estate market is rather insulated, and we hope to still see an active spring market with home values remaining stable. We’re excited to see what 2023 has in store!
If you’re looking to buy or sell a home this year, we’d love to serve you! Click here to learn more about how we use our expertise in Iowa real estate to help both buyers and sellers achieve their goals.
Cheers to a prosperous 2023,