Corridor home sales swoon as tax credit program ends

July home sales dropped by more than half from year-ago levels in the Corridor.

The big drop was clearly due to the expiration of a federal tax credit program that enticed many buyers to purchase.

The Cedar Rapids Area Association of Realtors reported that 235 homes were sold in July, down 46.8 percent from July 2009.

“As expected, we saw a decrease in solds comparing June 2010 to July 2010 as well as comparing July 2009 to July 2010,” said Kevin Platz, associate executive of the Cedar Rapids Area Association of Realtors. “I don't think anyone is surprised in the decrease in residential units sold, especially with the conclusion of the home buyers tax credit.”

The Iowa City Area Association of Realtors reported 195 homes sold in July 2010, down 57.6 perent from 460 in July 2009.

The price of homes sold trended upward on a year-over-year basis, however.

In Iowa City Multiple Listings Service, the median price of homes sold increased $8,000, or 5.2 percent, to $160,000, from year-earlier levels.

The median price in the Cedar Rapids Multiple Listings Service in July was $155,000, an increase of $15,025, or 10.7 percent, from July 2009.

The Iowa City Area Association of Realtors reported that homes sold had been on the market for an average of 91 days in July, a slight improvement on 93 days in July 2009. Comparable data for the Cedar Rapids area was not available.