Quad-City housing market ‘healthy’ despite talk of recession

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National outlets are sounding the alarm on a housing recession, but local Realtors say that could not be farther from the truth.

“We’re turning it back into a healthy market,” said Kendra Mulcahy with Ruhl & Ruhl Realtors of Davenport.

CNBC reported this week that the National Association of Home Builders/Wells Fargo Housing Market Index has dropped eight times in a row. The index is now in a negative; that has not happened since the beginning of the COVID pandemic and before that, not until June 2014.

Locally, the housing market has turned from a sprint to a jog,  but that’s not bad news in the slightest for real-estate agents. Mulcahy said when the market was at its busiest, both buyers and sellers were inundated with stress.

Multiple showings and offers are great in theory, but were overwhelming for both parties. Now, things have slowed down, but that is good news for both buyers and sellers. Mulcahy said homes are still selling and as long as it shows well, the property will not be on the market long. 

Fewer offers does not mean less money, she added. While in the past multiple offers were driving prices considerably, buyers are still willing to pay top-dollar for homes in good condition. 

For proof, she pointed to the numbers. 

Sharon Smith, CEO at Quad City Area Realtors, said looking at January through July 2019, the average day on market was 42. The same period in 2020 was 51 days and in 2021 31 days. In 2022, it dropped again to 27.

“Making any kind of correction from the crazy market (we were in) to being where we (are,) its a better market for buyers and sellers,” she said.

The sales-to-list ratio is also increasing locally. In 2019, sales were at 97.6% and gradually increased with 2022 reporting more than 100% success.

“When the listing price is what it sells for, at 100% list to sale, that means the house was priced correctly and ready to show,” she said.

A notable boom in the market occurred from 2020-21, but Smith said those years aside, by comparing 2019 to 2022, there is an 8.6% increase in sales. But, there has been a decrease in listed properties by 22.3%.

“What that’s telling us is what’s going on the market is selling,” she said.

Mulcahy said this is all due to the robust local economy. National economists looking at the housing market are not taking into account what is going on in the Quad-Cities, she said.

In Davenport alone, Amazon and Fair Oaks Foods are building multi-million dollar facilities that are expected to employ hundreds. Across the river, East Moline landed a $23 million grant to improve infrastructure. 

The commitment to the future is what is drawing people into the area, and encouraging them to stay, she said.

“People are looking at their property in a different way,” Smith agreed.

While some invested in their homes in order to make them more comfortable, others invested to ensure the most bang for their buck when the chose to list.

“I don’t think of our inventory as being low. I just think we have a lot of people that need to buy real estate,” she said.

Mulcahy built on that idea, saying the affordable prices of the Quad Cities draws people in as well. This time of year there is typically a slow down in the market, however. 

Smith said while families are focused on getting children back to school, buying and selling generally slows

“Last year was such a crazy, off-the-charts year, that you just don’t keep going up like that,” she said. 

“That was a time in history that does not come around a lot,” Mulcahy said. “We’re turning back into a healthy market, and that’s a great thing.”

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Region: Northern,City: Quad Cities,Region: QC,Business

via qctimes.com – RSS Results in business of type article https://ift.tt/0WewZBK

September 2, 2022 at 03:59PM

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