Lora Shreve

December was a good month for the Ames housing market even with the seasonal fluctuations in the real estate market with the holidays and Iowa snowfalls and cold temperatures. The supply of inventory continues to be low (10.3% lower than 2007 and 25% lower than 2006), and the number of pending sales remaining strong with 22 homes going off the market as a pending status in December.

The listing supply (period of time needed to clear the housing market inventory) has gone from 15 months (2007) down to 11 months (2008) for Ames area for the month of December.

The increase of sales is contributes to the affordable housing and financing that is available for buyers. Sellers have had to become more competitive with price and condition of their homes than in the past few years. A positive note for the seller, home sales for 2008 averaged a 1.2% increase in value for the Ames area compared to many areas in the country experiencing a 5-35% decrease in home values. This indicates that homes purchased in our area are still a safe investment in contrast to a volatile stock market.

Home sellers should note that while the numbers of sales are 12.2% higher this quarter in contract to the previous year a large number of homes are remaining on the market unsold. As of Jan. 2nd, 2009 we found that 174 of the 242 listings in the Ames area had been on the market in excess of 60 days; still indicating a need for more appropriate pricing. The homes that sold in December were on the market an average of 129 days.

December was a good month for the Boone housing market even with the seasonal fluctuations in the real estate market (December tends to be one of the slowest months for Real Estate sales). The supply of new listings continued at the same pace, but the number of pending sales increased 140% compared to last year (17 for 2008 compared to 7 in 2007).

The listing supply (the period of time needed to clear the housing market inventory) has gone from a high of over 23 months (2007) down to the low teens (2008) for Boone County for the month of December.

The silver lining to this housing market cloud is the affordable housing and financing rates available for buyers which is causing the increase in pending and closed real estate sales. With the influx of foreclosure homes coming onto the market, sellers have had to become more competitive with price and condition of their homes. A positive note for the seller, home values in 2008 averaged a .5% increase for the Boone County area compared to many areas in the country experiencing a 5-35% decrease. This indicates that home purchases in our area are still a safe investment in contrast to a volatile stock market.

Buyers in many price ranges are finding an abundance of homes available for sale with the increased inventory levels. Given the wide variety of choices available, buyers are in a position to be very selective in their choice, and they are not paying more than the current market value of a home. Home sellers should note that while the numbers of sales are slightly higher than 2008 for the last quarter, a large number of homes are remaining on the market unsold. As of Jan. 7th, 2009 we found that 142 of the 199 listings in the Boone area had been on the market in excess of 60 days; still indicating a need for more appropriate pricing. The good news is that homes which are appropriately priced, at current market value, and are in move in condition are indeed selling at an average of 90 days on the market.

According to the Ames MLS, we witnessed 39 pending sales in Ames and the rural subdivisions surrounding Ames in the month Oct., suggesting a rather healthy and stable real estate market greater than 2007 pending sales of 31 for the month. Sept. pending sales were also greater than 2007 with 35 compared to 24 indicating a very stable market for the Ames area. As of Nov. 3rd we have 250 homes listed for sale on the MLS in Ames and rural Ames. At Hunziker & Associates, Realtors we pay very close attention to the absorption rate, the rate in which "active" listings are converted into sales. "Supply" is defined by the taking the number of homes actively for sale in a given market divided by the number of houses sold within a specified period of time. In this instance we have 250 houses for sale, and our current pace of sales is 39 homes per month. Should the pace of sales continue at this rate, and no further houses are added to the market, it would take 6.4 month to exhaust the existing supply of homes on the market in Ames. In comparison we had 10.2 months inventory supply at this same time in 2007.

Home sellers should note that while the number of sales is rather healthy, a large number of homes are remaining on the market unsold. As of Nov. 3, we found that 175 listings in Ames had been on the market in excess of 60 days. The good news is that homes which are appropriately priced, at current market value, are indeed selling.

Hunziker and Associates accounted for 41.6% of all pending sales in Ames MLS in the month of Oct. in Ames, more than our next three closest competitors combined. While one may boast of numbers, statistics, transactions, etc., at the heart of it all is the individuals and families that are being served. This service is at our core, and our mission statement reflects our values, stating, "Hunziker and Associates is committed to developing and maintaining positive relationships with individual and families to meet their real estate needs." We look forward to assisting you should you have any real estate needs.

According to the Boone MLS, we witnessed 19 pending sales in Boone and surrounding Boone in the month of October, suggesting a stabilizing real estate market. In 2007 pending sales were 16 for the month. September pending sales were comparable also with 13 compared to 14 in 2007, and 28 and 28 in the month of August for both years. As of Nov. 3rd we have 215 homes listed for sale on the Boone MLS. At Hunziker & Associates, Realtors we pay very close attention to the absorption rate, the rate in which "active" listings are converted into sales. "Supply" is defined by the taking the number of homes actively for sale in a given market divided by the number of houses sold within a specified period of time. In this instance we have 215 houses for sale, and our current pace of sales is 19 homes per month. Should the pace of sales continue at this rate, and no further houses are added to the market, it would take 11.3 month to exhaust the existing supply of homes on the market in Boone. In comparison we had 12.0 months inventory supply at this same time in 2007.

While the pace of sales in August, September and October shows some market stabilization in comparison to the summer months of May, June and July. Home buyers are still finding themselves in a favorable bargaining position versus the home seller. Buyers in any price range are finding an abundance of homes available for sale. Given the wide variety of choices available, buyers are in a position to be very selective in their choice, and they are not paying more than the current market value of a home. Home sellers should note that while the numbers of sales are comparable to 2007, a large number of homes are remaining on the market unsold. As of Nov. 3rd, we found that 147 listings in the Boone area had been on the market in excess of 60 days. The good news is that homes which are appropriately priced, at current market value, and are in move in condition are indeed selling at an average of 93 days on the market.

At Hunziker & Associates, Realtors service is at our core, and our mission statement reflects our values, stating, "Hunziker and Associates is committed to developing and maintaining positive relationships with individual and families to meet their real estate needs." We look forward to assisting you should you have any real estate needs.