Corridor homes sales slip in July but still above 2011 numbers

Home sales slipped in Cedar Rapids and Iowa City last month from their peak in June, despite an adequate inventory of houses and condominiums on the market and record low mortgage rates.

The Cedar Rapids Area Association of Realtors reported 427 homes were sold in July, down from 495 in June, but up from 406 in July 2011 and sharply higher than the 295 homes sold in July 201o. The average price of a home sold in July was $167,958, down from $179,568 in June, but an increase from $165,768 in July 2011.

At the southern end of the Corridor, 343 homes were sold in Iowa City, Coralville and surrounding communities, down from 455 in June, but an increase from 338 in July 2011, according to the Iowa City Area Association of Realtors. The average price of a home sold last month was $201,076, down from $208,506 in June but up from $189,764 in July 2011.

Kevin Platz, association executive for the Cedar Rapids Area Association of Realtors, said it's not unusual for sales to peak during the summer months.

"We're either going to peak in June, July or August," Platz said. "We beat July 2011, so relatively speaking July was still a very good month.

"At least we're back to some normalcy in the market. We're not going to see huge ebbs and flows, but this year certainly looks like a stronger market than last year."

Statewide housing statistics for July will be released next week by the Iowa Association of Realtors.

Separately, the National Association of Home Builders on Thursday reported that housing starts, an indicator of consumer and builder confidence in the housing market, have risen to the highest level in four years. National housing starts were up 23.6 percent through July when compared with the same period last year.

Cedar Rapids recorded 29 building permits for new houses, condominiums or duplexes in July, up from 26 in June. Builders took out permits in July for nine new single-family homes or duplexes in Iowa City, down from 24  in June.

Chris Skogman, president of Skogman Realty, said the outlook is strong for new home sales in the Cedar Rapids-Iowa City Corridor.

"July 2011 was a very strong month with 50 new home sales and this July was just shy of that number with 47 new homes sold in the Corridor," Skogman said. "Iowa's relatively strong economy has benefited from lower unemployment and support for new business along with the resilience of a wide industry base."