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Cedar Rapids, IA: Real Estate Market & Trends 2016

Published on Monday - January 30, 2017

The Cedar Rapids real estate market continued on the road to recovery in 2016. Home prices and appreciation rates achieved slight improvements during the first-half of the year, with prices for Cedar Rapids real estate growing relative to the previous year. On the flip side, home prices and appreciation rates remained below the national average, with price trends in the last three years undercutting the steady post-recession price trend. Nevertheless, the Cedar Rapids real estate market made positive headway in the first-half of 2016 and the trend is expected to continue moving forward.

A variety of factors helped to motivate the Cedar Rapids real estate market in 2016. Home affordability was impressive during the first six months of the year, as homeowners nearly paid half as much as the rest of the country. Other positive notes include improvements to the local economy and new housing construction, both of which continued to achieve small gains in the right direction. Although still below the national average, the improvement trend in both segments should benefit Cedar Rapids real estate investors and homeowners moving forward.

Cedar Rapids, IA Real Estate Market Statistics:

Cedar Rapids real estate investments

Home appreciation is one of the many indicators investors use to assess how a real estate market is performing. One-year and three-year appreciation rates for Cedar Rapids real estate were 4.6 percent and -4.7 during the second quarter, compared to the national average of 4.9 percent 17.8 percent. Although lower than the rest of the country, appreciation rates are rebounding in the right direction which bodes well for Cedar Rapids real estate investors and homeowners alike. For those considering Cedar Rapids real estate investments, the following spotlights appreciation gains in previous years:

  • Homes purchased in the Cedar Rapids, IA housing market one year ago have appreciated, on average, by $9,476. The national average was $14,963 over the same period.
  • Homes purchased in the Cedar Rapids, IA housing market three years ago have appreciated, on average, by $1,154. The national average was $46,878 over the same period.
  • Homes purchased in the Cedar Rapids, IA housing market five years ago have appreciated, on average, by $26,920. The national average was $82,353 over the same period.
  • Homes purchased in the Cedar Rapids, IA housing market seven years ago have appreciated, on average, by $31,130. The national average was $77,054 over the same period.
  • Homes purchased in the Cedar Rapids, IA housing market nine years ago have appreciated, on average, by $37,054. The national average was $31,126 over the same period.

Home equity is another element that continued to improve in the Cedar Rapids real estate market in 2016. Although equity gains were lower than the national average, price appreciation in the last three years have helped homeowners and investors to build equity. Homes purchased a year ago have appreciated by $9,476, compared to the national average of $14,963. For those considering Cedar Rapids real estate investing, the last nine years has experienced decent equity gains, with year nine earning the highest total: $37,054 compared to $239,167 achieved by the rest of the country.

Foreclosures are another aspect to consider when evaluating real estate markets, especially for investment purposes. According to RealtyTrac, the month of December saw 344 properties in some stage of foreclosure in Cedar Rapids. That represents a 38 percent decline from the previous month and 46 percent lower than the same period last year. In terms of bank owned real estate, the area experienced 65.2 percent less REO properties than the previous month, and 46.7 percent less than the same period last year. Despite a lower number of foreclosures during the first-half of 2016, the Cedar Rapids real estate market is well endowed with investment opportunities.

Cedar Rapids, IA Real Estate Market Summary:

Cedar Rapids housing market

  • Current Median Home Price: $157,000
  • 1-Year Appreciation Rate: 4.7%
  • 3-Year Appreciation Rate: -4.6%
  • Unemployment Rate: 4.0%
  • 1-Year Job Growth Rate: 0.9%
  • Population: 128,429
  • Median Household Income: $54,465

Cedar Rapids, IA Real Estate Market (2016) — Q2 Updates:

Cedar Rapids real estate

The Cedar Rapids real estate market continued to make positive progress in 2016. The  median home price for Cedar Rapids real estate was $157,000 during the second quarter, compared to the national average of $239,167. Home appreciation also experienced improvements in the second quarter. One-year appreciation rates reached 4.7 percent for Cedar Rapids real estate, while three-year rates were -4.6 percent. Price trends in the last three years have undercut the steady post-recession price trend, yet price appreciation for Cedar Rapids in the last three years has helped homeowners to build equity.

The second quarter also witnessed improvements to the local economy. Unemployment in the area was lower than the rest of the country, with a four percent unemployment rate compared to 4.9 percent.Although unemployment has risen since the same period last year, Cedar Rapids’s labor market has been more resilient than the national average. However, employment in Cedar Rapids continued to slow, as one-year job growth reached 0.9 percent during the second quarter, compared to 1.9 percent by the national average. That said, local employment growth in Cedar Rapids is poor and needs to improve.

The highlight of the Cedar Rapids housing market in the second quarter was home affordability. Homeowners paid 6.8 percent of their income to mortgage payments, compared to the national average of 15.8 percent. Cedar Rapids was among the most affordable areas in the country in the second quarter of 2016. Conversely, the rate of the new housing construction declined during that period. The level of construction was 17.1 percent below the long-term average, while the number of single-family housing permits also declined during the same period, dropping -8.7 percent compared to the national average of 10.6 percent.

Lastly, the rate of foreclosures is another aspect investors and homeowners should pay attention to. The month of December experienced a decline in both foreclosures and REO properties in the Cedar Rapids real estate market. The number of foreclosures in Cedar Rapids dropped 38 percent from the previous month and 46 percent than the same period last year, while REO properties fell 65.2 percent from the previous month and 46.7 percent less than the same time last year.

Looking forward, the Cedar Rapids real estate market is expected to see less growth in the next 12 months than the rest of the U.S. According to the National Association of Realtors (NAR), home prices for Cedar Rapids real estate are forecasted to grow by 2.8 percent, compared to the national average of 3.6 percent.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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