The real estate market in Iowa City, IA is once again moving forward, as sales in July outpaced year-over-year numbers in 2008. But what would you expect from the 10th Smartest City in the country according to Forbes Magazine.

While not one of the largest markets in the country, Iowa City has found itself weathering the real estate downturn compared to other small cities. Local blogger and Realtor, Denise Hamlin, points out that while "Iowa City isn't totally immune to national events, it's just in a better position to rise above the challenges with a fundamentally strong economic environment."

Currently, home sales are up 10 percent for July, while prices are lingering about 6 percent below last year at this time, which, of course, is what usually brings buyers out from the sidelines. The average price of a house in Iowa City is $159,250, about $10,000 less than a year ago.

The city of 62,000 plays host to University of Iowa (it's largest employer), which also contributes to the city's young average age at 24.8 years of age.

While IU's Institute for Economic Research is forecasting higher unemployment in the next year, it's also forecasting a growth in personal income of 3.8 percent for 2009 and then moving up to 4.5 percent in 2010.

Published: August 14, 2009

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