For her first home, Kristin Wilhem would like to have a fireplace, a fenced-in yard and enough space for her two dogs.
Touring homes on Wednesday, the first place she saw — a 1950s, one-and-a-half story home with a renovated kitchen — didn't sell her completely. But Wilhelm remains optimistic.
"I'm excited about (searching). It's been smooth so far. It's kind of fun," she said. "Once I actually sign paperwork, I might get kind of anxious."
The 32-year-old physical therapist assistant, who previously owned a condo, will join potential homebuyers around the Cedar Rapids metropolitan area who likely are facing tough competition for their first houses.
Cedar Rapids's housing market got an early jump this year as pent-up demand mixed with a milder winter and a low inventory of available houses speeded up the time homes are sold.
Real estate agents interviewed by The Gazette repeatedly mentioned the faster-paced movement of houses in the metro market. But that inventory — especially for lower-priced properties — is tightening.
The market, agents said, has become particularly friendly for sellers.
"If people are thinking about selling or upsizing, this marketplace is a perfect time to do it because we have such a good, robust" market, said Joy Seyfer, a broker-manager for Skogman Realty.
In the first three months of the year, new and existing houses in the Cedar Rapids metro area were on the market for an average of 70 days — 13 days fewer than the same time last year and 20 days fewer than the start of 2015, according to data from the Cedar Rapids Area Association of Realtors. The count includes sales in Cedar Rapids, Hiawatha, Marion and Robins.
Seyfer said the metro housing market "has really kicked into gear" in the early months of 2017.
"I think our market really started to take off even in January, and it's just continued to build," she said.
Even though homes are moving faster, the metro area did not see a huge spike in the number of houses sold between January and March of this year. In those three months, 543 residential units sold, compared to 544 sold the same time a year ago.
That stability is beneficial for qualified buyers, but they may need to move faster, said Ollie Dent, a broker-manager for Ruhl & Ruhl Realty and board president for the CRAAR
"I think if a buyer wants to get into a home, it's totally possible," Dent said. "There's homes available in all different price points."
Both Seyfer and Dent said 70 days on the market may be misleading, as the number includes new homes that can take longer to sell, and well-maintained properties always move quicker.
"We're seeing that there are a lot of properties that are being sold within a couple of days of being on the market," Dent noted. "When you've got two or three that have been on the market three to six months, those are going to bring those numbers up."
Wilhelm's agent, Penny Novak with Skogman Realty, said she's had multiple listings in Cedar Rapids sell in days.
"In the $100,000 to $150,000 price range, it hasn't been a week for any of them that we've put on the market," Novak said. "If they're priced right and good, they are gone because there's no inventory."
As fewer homes are available — there were just 1,988 active listings in January through March, compared to 2,559 a year ago — is pushing up prices. The average selling price for new and existing homes rose $174,235 in the first three months, up from $154,235 last year, according to the local association data. The median selling price rose to $148,000, from $136,445.
The metro's lower inventory can be tied to the economic downturn that began in 2008, Seyfer said. Builders put off constructing homes, and younger adults at the time delayed purchasing property, unsure of their economic future.
Now those adults "feel like they've finally gotten to a point where they have their head above water and they feel confident enough to make those financial home choices," she said.
Low inventory in the Cedar Rapids market mirrors a trend at the national level, said Adam DeSanctis, economic issues media manager for the National Association of Realtors.
"Total inventory was down in February 6.4 percent compared to last February. In addition to that 6.4 percent, it has declined year-over-year for 21 straight months," DeSanctis said.
More people buying, a lag in home construction since the recession and hesitancy among potential sellers all have contributed to keeping inventory low, DeSanctis said.
Potential buyers, he said, should do work ahead of time to make sure they can make an offer as soon as possible.
"If you're really serious about buying a home, meet with a lender to get preapproved for a mortgage and get all of that preliminary stuff set up before you start looking for a home," DeSanctis said.
Tighter inventory driving up prices matched with slight increases in mortgage rates can drive down home affordability, Ralph McLaughlin, the chief economist for real estate website Trulia wrote in a report last month.
"While homeowners across the country are thrilled to regain equity in their homes, many have not been in a hurry to trade up," McLaughlin said in a statement. "This has added to the inventory gridlock that ties up would-be starter-home inventory from ever coming on to the market, further constraining supply and decreasing affordability."
Locally, Dent said agents are trying to convince owners who have put off selling to help boost inventory.
"I do think there are consumers out there that are maybe considering making a change in their housing, but maybe haven't done so yet because over the last year or two, they weren't sure what the larger economy was going to do," Dent said.
Despite the lower inventory, Dent and Seyfer said they are not worried about the metro area having enough residential properties available. As local prices continue to rise, sellers may become more confident and put their homes on the market, creating necessary churn.
Something "dramatic," such as a spike in interest rates or large population swings, would have to occur to drastically alter the market, Seyfer said.
