Realtors in Iowa communities including Ames, Iowa City, Cedar Falls, and Marshalltown say that low interest rates are spurring the sales of starter-priced homes.
Ames
"Despite record low home mortgage rates and a healthy number of residential real estate sales, the residential real estate market remains balanced between buyers and sellers," says Realtor Paul Livingston. "Overall housing inventory (supply) is down from the same period a year ago. In fact, supply is extremely low at 2.0 months inventory. Typically we would find increasing prices with reduced supply combined with strong demand; this does not appear to be the case, yet."
Iowa City
Says Realtor George Klein, "Iowa City is the home of the University of Iowa, Population (metro) approx. 80,000. Iowa City and its vicinity has a buyer's market in upper price ranges ($300K+). The market for condos, zero-lots and homes under $150,000 is hot. There is a shortage of lots for construction of new zero-lots. Short supply of homes from $125,000 to $225,000. All ranges have increased prices.
Cedar Falls
"If you are shopping under $150,000 you need to act fast if you want to find a home that fits your needs," says Realtor Gloria Mueller. "There is a larger selection of homes over $200,000. This price range is not as active as the lower ranges. Interest rates are great! It is a perfect time to move!"
Marshalltown
Suggests Realtor Tammy Rohrs, "With the low interest rates, and a healthy supply of homes on the market, it is a great time for buyers. Interest rates are below 6 percent and many of our local bankers have 0 percent down programs available for most everyone, not just the first time home buyers. Don't wait until prices and interest rates go up. Find a home now. Home Sellers can get in on these great interest rates too, by moving up to a larger home at a lower rate. Or building a new home."
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Published: July 2, 2003
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