We have investigated the effects of post annealing on iron oxide nanoparticles synthesized by the novel hydrothermal synthesis method with the $FeSO_4{cdot}7H_2O$. To investigate the post annealing effect, the as-synthesized iron oxide nanoparticles were annealed at different temperatures in a vacuum chamber. The morphological, structural and magnetic properties of the iron oxide nanoparticles were investigated with high resolution X-ray powder diffraction (XRD), high resolution transmission electron microscopy (HRTEM), Mossbauer spectroscopy, and vibrating sample magnetometer analysis. According to the XRD and HRTEM analysis results, as-synthesized iron oxide nanoparticles were only magnetite ($Fe_3O_4$) phase with face-centered cubic structure but post annealed iron oxide nanoparticles at $700^{circ}C$ were mainly magnetite phase with trivial maghemite ($gamma-Fe_2O_3$) phase which was induced in the post annealing treatment. The crystallinity of the iron oxide nanoparticles is enhanced by the post annealing treatment. The particle size of the as-synthesized iron oxide nanoparticles was about 5 nm and the particle shape was almost spherical. But the particle size of the post annealed iron oxide nanoparticles at $700^{circ}C$ was around 25 nm and the particle shape was spherical and irregular. The as-synthesized iron oxide nanoparticles showed superparamagnetic behavior, but post annealed iron oxide nanoparticles at $700^{circ}C$ did not show superparamagnetic behavior due to the increase of particle size by post annealing treatment. The saturation of magnetization of the as-synthesized nanoparticles, post annealed nanoparticles at $500^{circ}C$, and post annealed nanoparticles at $700^{circ}C$ was found to be 3.7 emu/g, 6.1 emu/g, and 7.5 emu/g, respectively. The much smaller saturation magnetization value than one of bulk magnetite can be attributed to spin disorder and/or spin canting, spin pinning at the nanoparticle surface.