Local housing market starting to normalize, realtors say

By Cheryl Allen
Posted 8/31/22

With mortgage interest rates ticking upward and inflation at a 40-year high, it would be reasonable to expect home sales to slow and more homes to be available on the market.  However, realtors …

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Local housing market starting to normalize, realtors say

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With mortgage interest rates ticking upward and inflation at a 40-year high, it would be reasonable to expect home sales to slow and more homes to be available on the market.  However, realtors Jessica Yoder (Lepic-Kroeger, Realtors) and Katie Sisson (Ruhl & Ruhl Realtors) don’t see that happening in our local area yet.

Both realtors agree that August is generally a slower month for home sales, as would-be buyers are focused on enjoying end-of-summer events like the Iowa State Fair and getting their kids back to school.  But demand for homes generally stays strong through the autumn months.

Yoder, who works as a team with realtor Sarah Bigley, sees more people from nearby cities considering relocating to our community.

“We’re the only ones in our area that are on three multiple listing services.  It gives our sellers more options for buyers to look at their home, and it gives buyers out there more options to see what’s on the market too,” Yoder says. “And we’re seeing agents coming from Des Moines over here to look. . . From Cedar Rapids, from Iowa City, because buyers can’t afford the larger city prices.  They can get more for their money by being in a rural community.”

Our excellent school systems, as well as the lower tax base in Washington County compared to counties like Johnson or Linn, are also factors that draw people to our area, Yoder notes.

Sisson, who works as a team with realtor and husband Ryan Sisson, says there may be more homes available in Iowa City than there were earlier in the year, but our smaller community still does not have enough to meet demand.

“In Wellman, we have four properties on the market.  Currently, two of them are pending with accepted offers. Kalona has more listings, but with Kalona, we also have lots of lots that are for sale,” Sisson explains, adding that lots are only attractive to those who plan to build their own home.   

For homes that are on the market in Kalona, “They’re running between $250,000 to $400,000. [For] first time homebuyers, they really need to be under that $200,000 mark.  For people in that range, it is really hard to find something still.”

As far as home prices go, they do not seem to be falling.

“They’re still staying pretty consistent,” Yoder says.

“It’s not so much that prices are coming down, its just taking a little bit more [time] to get them to move. . . That rush isn’t there anymore,” Sisson says.

Although mortgage interest rates have risen from recent lows of around 2.8% to close to 5.8% at present, it is worth noting that these rates are still low by historical norms.  In the 1980’s, rates averaged 12.7%; in the 1990’s, 8.1%.

“Now is a great time to buy a house because rates are still low, and there are some good incentives out there with different grants for buyers,” Yoder says.  “We actually had first-time homebuyers who pulled out of the market earlier, just because they didn’t want to go into a multiple-offer situation.  And now they’re starting to look, and they feel more comfortable in their decision now.”

Sisson agrees that now is a good time to buy or sell a home.

“Whenever you buy a home, you’re investing in yourself,” she says.  “Gas prices will fluctuate, food prices will fluctuate, but real estate has been one thing that has always been a good investment.  So, whether you’re buying to invest, whether you’re buying your own home, you’re building equity in yourself and in your own family, versus throwing it into the stock market or things like that, because those things will fluctuate over time.”

Jessica Yoder and Sarah Bigley with LKR Realtors are your proven, local, and driven realtors in the real estate industry with 40 years of combined real estate experience.  Let them help you in today’s changing real estate market.  (319) 351-8811

Whether it is buying, selling, relocating, or just staying informed on what is happening in their real estate market, Sisson Team is here to help everyone with their real estate needs.  (641) 990-7932