The current dynamics in Davenport suggest that it is more of a seller’s housing market. With homes selling quickly and often receiving multiple offers, sellers have the upper hand in negotiations. Contrary to a downward trend, home prices in Davenport have experienced a substantial increase of 12.4% over the past year. This upward trajectory indicates a robust and appreciating real estate market.
While the market has shown signs of competitiveness, there is no immediate indication of a housing market crash. The steady rise in home prices and demand suggests stability in the foreseeable future.
How is the Davenport housing market doing currently?
According to Redfin, the Davenport housing market is undeniably competitive. The median sale price of homes in Davenport reached $181K last month, marking a significant increase of 12.4% compared to the previous year. This positive trend is also reflected in the median sale price per square foot, which has risen by 5.6% over the same period.
In December 2023, Davenport’s real estate market continued its upward trajectory, with home prices experiencing a notable surge of 12.4% compared to the previous year. Homes in Davenport are now selling at a median price of $181K. The speed of transactions has also seen improvement, with homes typically spending 20 days on the market, a day less than the previous year. However, the number of homes sold in December decreased to 97, down from 115 in the same period last year.
Real Estate Market Comparison
Despite the competitive nature of Davenport’s housing market, the median sale price remains 56% lower than the national average, making it an attractive option for prospective buyers.
Davenport’s real estate market is characterized by its competitiveness, with many homes receiving multiple offers, some even with waived contingencies. On average, homes sell for approximately 2% below the list price and go pending in about 20 days. Hot properties, on the other hand, can command prices about 1% above the list price and go pending in a mere 6 days.
Key Real Estate Metrics
- Sale-to-List Price: 99.1% (+2.1 pt year-over-year)
- Homes Sold Above List Price: 34.0% (+6.2 pt year-over-year)
For potential buyers, the current market conditions in Davenport pose challenges, given the high competition and rising prices. However, individual circumstances and long-term investment goals should be considered when determining if it’s the right time to make a purchase.
Davenport, IA Housing Market Forecast for 2024
According to data from Zillow, the average home value in Davenport stands at $161,075, reflecting a 2.6% increase over the past year. Homes in Davenport typically go pending within an impressive 14 days, showcasing the market’s brisk pace as of December 31, 2023.
Inventory Snapshot (December 31, 2023)
- For Sale Inventory: 268
- New Listings: 88
Key Metrics (November 30, 2023)
- Median Sale to List Ratio: 0.995
- Median Sale Price: $180,367
- Median List Price: $171,617
- Percent of Sales Over List Price: 31.2%
- Percent of Sales Under List Price: 49.4%
Interpreting Market Dynamics
The median sale to list ratio of 0.995 indicates a healthy balance between listing prices and actual sale prices as of November 30, 2023. The median sale price at $180,367 and median list price at $171,617 suggest a market where sellers are reasonably pricing their homes.
Is It a Buyer’s or Seller’s Housing Market?
The current data suggests a balanced market, providing opportunities for both buyers and sellers. The reasonable median sale to list ratio supports fair transactions. As of now, there is a positive trend with a 2.6% increase in average home values over the past year, indicating stability and potential for appreciation.
Should You Invest in the Davenport IA Real Estate Market?
Population Growth and Trends
- Davenport, Iowa, has experienced steady population growth over the years. This is attributed to its strategic location, relatively affordable living costs, and access to quality education and healthcare facilities. A growing population is generally a positive indicator for real estate investors, as it suggests an increasing demand for housing.
- Furthermore, Davenport is part of the Quad Cities region, which encompasses multiple cities in Iowa and Illinois. This interconnected region offers a diverse pool of potential renters and buyers, increasing the potential for real estate investment opportunities.
Economy and Jobs
- The economy in Davenport is diverse, with industries including manufacturing, healthcare, education, and government. The region has seen job growth in various sectors, contributing to economic stability. A strong job market is essential for real estate investors as it directly affects rental demand and the ability of residents to purchase homes.
- Davenport is home to major employers, such as John Deere, and it benefits from its proximity to the larger metropolitan area of the Quad Cities. This economic stability can translate into a more resilient real estate market.
Livability and Other Factors
- Davenport offers a high quality of life with access to parks, cultural amenities, and a variety of recreational activities. Its family-friendly environment and schools make it an attractive place for residents to settle down.
- Proximity to the Mississippi River adds to the city’s appeal, offering scenic views and opportunities for outdoor recreation. These livability factors can contribute to a steady demand for both rental and owned properties.
- The city’s low cost of living compared to larger urban centers also makes it an appealing option for those looking to invest in real estate or move to the area.
Rental Property Market Size and Growth for Investors
- Davenport has a significant rental market, with a steady increase in rental prices. The 8.3% increase in average rent prices in 2023, as mentioned earlier, is indicative of the growing demand for rental properties.
- Investors looking to enter the rental market in Davenport can benefit from the relatively low entry costs compared to larger cities. Rental properties can provide a steady stream of income, especially in a market with strong demand like Davenport’s.
Other Factors Related to Real Estate Investing
- Davenport’s housing market has shown resilience, with home values experiencing a 1.9% increase over the past year. This indicates the potential for property appreciation, a key factor for real estate investors.
- The city’s location in the Quad Cities region provides access to a broader market, allowing investors to diversify their portfolio across multiple cities and property types.
- While the market is currently leaning towards sellers due to high demand, investors can find opportunities in various property types, from single-family homes to multi-unit complexes, to cater to the diverse housing needs of the population.