North Liberty IA Real Estate Market: Home Sales in the 2nd and 3rd Quarter 2011
Keeping on top of market reports is turning out to be a challenge in the summer months when I’m busy. I’m doubling up with my quarterly reports and giving you two for one this time round by looking at 2nd and 3rd quarter home sales. Last week I covered Iowa City and Coralville. This week it’s North Liberty’s turn.
170 homes sold in North Liberty in the 2nd quarter 2011 compared to 238 homes sold in the 2nd Quarter 2010 – That’s a 28% decrease in home sales compared to last year for the 2nd quarter.
Now let’s fast forward to the 3rd Quarter. 150 homes sold in North Liberty in the 3rd Quarter 2011 compared to 104 homes sold in the 3rd Quarter of 2010. That’s a 44% increase in home sales compared to last year.
When you look at this data there are a couple of things to keep in mind. First of all, any comparison to last year’s numbers of homes sold is going to be skewed. As long as the first time homebuyer credit was around it inflated the numbers, once it was gone it had the opposite effect. The original deadline for closing on a home was at the end of the 2nd Quarter last year. That explains why we see a huge rise in sales in the 2nd quarter 2010 and a huge drop in the 3rd quarter right after that deadline.
Real estate is seasonal, that’s why we usually like to look at the statistics based on a comparison to a similar time period in the previous year. That’s not working so well for us this year. That’s why it makes some sense to look at the number of homes sold in the previous quarter to gauge how the market is trending.
Looking at home sales in the 3rd quarter compared to the the 2nd quarter this year we see that home sales in North Liberty are strong for the time of the year. Following suit with Iowa City and Coralville, the signs are that buyers are gaining confidence in the housing market again. Home prices in North Liberty are great. The interest rate is at a phenomenally low 4.00%. There’s no reason why this trend shouldn’t continue through the Autumn months.
Source for data: Iowa City MLS October 13, 2011