Iowa City Real Estate Blog: October 2009

It's Friday AND it's Halloween weekend. This is my weekly look at fun stuff to do in Iowa City and Coralville. These are just a few things that caught my eye for this weekend Oct 30 - Nov 1.


It's Halloween weekend. Maybe that's the reason there's a serious lack of new movie releases to write about. Amelia, with Hillary Swank and Richard Gere is the only new movie in today in our theaters: Sycamore Mall Movie Theater in Iowa City and Coral Ridge Mall Movie Theater in Coralville. It's a biography about Amelia Earhart, an inspirational woman who became famous in the 1920's and '30's in the "man's world" of aviation. On the other end of the spectrum, Michael Jackson fans will more than likely continue to line up for the opportunity of seeing him in action for the last time in This is it. Like I said though, it's Halloween, most folks will have much more fun plans than going to the movies this weekend.

One of those funs things will be trick-or-treating. I didn't know there were allocated times for the different local communities - I do now, thanks to the Press Citizen. In Iowa City it is dusk - 8.00pm, Coralville 5.30pm -8.00pm and North Liberty 5.00pm - 8.00 pm.

Moving on...The Englert has some Halloween fun lined up for this evening with a Masquarade Ball. And at midnight tomorrow there is more revelry when the Riff Raff Theater presents The Rocky Horror Picture Show.


Zombie Prom continues it's run at the Johnson County Fairgrounds: "Imagine Michael Jackson's "Thriller" music video paired with poodle skirts, prom dresses and zombies" That's a direct quote from the Daily Iowan, our University newspaper, where you'll find the rest of the article and schedule for this zany show directed by my friend Jeff Shields of the Iowa City Community Theatre. Totally in line with the Halloween spirit, the organizers encourage visitors to wear Halloween costumes. Still in line with Halloween, the last show is on October 31.

Can't write a post without mentioning Iowa City's best live entertainment venue, as voted in the Press Citizen's Best of the Area List. You can't beat The Mill for entertainment. Check out the schedule. There's always fun stuff going on there and this weekend they're kicking it up a notch with their Annual Halloween Show.


Now how about something for those who want something non Halloween related...

Harvest Art continues at the Chait Galleries downtown. Harvest Art is an exhibit featuring paintings from Tam Bryk, digital pigment prints from Sara Lee Brown, abstracts from Matt Lyvers, paintings from Bekah Ash and poured iron from John Coyne. The schedule is on the Press Citizen's website.

Prairie Lights Bookstore was also on that Best of Area list and as someone who just loves books I have a self-imposed requirement to mention them every week... They often have guest readings and are definitely worth bookmarking. They already have great coffee. Apparently very soon they will also be serving alcohol. I love the idea of the ambience that will create - A glass of red wine and a book. Sounds like heaven to me...



Now let me think, what have I missed?? Oh yes...It's Halloween weekend and the Iowa Hawkeyes are set to play at home against Indiana... The UI has set some ground rules for fans wearing costumes to the game. I'm sure that won't dampen anybody's spirits though. Our guys are on a roll and looking to make it 9 for 0. Who doubts they can do it? No-one around here that's for sure!

Iowa City Real Estate - Selling a Home in Iowa City - A couple of reasons why now is a good time to list your home for sale

Have you been wondering lately whether now is a good time to sell your home? It might be. If you look at the big picture and factor in the long term I can give you at least a couple of reasons as to why it's a good idea to list your home in Iowa City now.

Let me start off by telling you that the Iowa City real estate market is more resilient than many other markets. Iowa City is a relocation town. Lots of the time folks are moving because they must  - not because they choose to. That puts a totally different dynamic into buying or selling a home in the Iowa City area.

That's the good news. The not so good news is that prices are kind of flat, so the chances of making a big profit when you put your home on the market are not great. (This is where you need to start thinking long term). Think of it this way: Buyers market or sellers market, it's unlikely in any market that you will make on both sides of the transaction. You might make a little less in this market than you expected, but you will get a good deal when it comes to buying your next home. Conversely, if you make big money when you sell your home, chances are you'll need to pay more when you buy a new one too.

In fact, if you're busting out at the seams of the little house you're in now and are upgrading to buy a bigger and better home, there's a good chance you'll end up really coming out ahead. You may wonder how. Well, there's a high likelihood that you will make great deal on your new (more expensive) home AND profit from the incredibly low interest rate (= lower mortgage) you'll pay for that lovely new home of yours.

What if you're downgrading and buying a smaller home? It still looks good. We have a flat market, not a declining market. In fact, if you check out my absorption rate analysis from last week you'll see that the Iowa City real estate market is definitely trending in the right direction for sellers. And as far as prices are concerned, year over year home prices in Iowa City are down by 2%. That's not too bad when you think about it.

If you're downgrading after many years in a home, you'll be just fine. Even if you're selling a home after living there just a few years there's still a chance you'll break even. (Depending on whether you bought the home in the boom years or not and paid a premium for it). And you will still profit from the extremely low interest rates available right now. Not to mention the big motivator that smaller homes cost less to maintain - right down to the utility bills.

There you have it. If you look at the big picture, upgrading or downgrading, there are a few good reasons for listing your home for sale now. In my estimation prior planning is key to getting a home sold, so with that in mind I'm including a few links below for you to check out. Also, once November rolls around you can expect to see my monthly real estate market reports for October, not just for Iowa City, but for Coralville and North Liberty too.

Selling a Home in Iowa City - The most important aspect to getting a home sold is pricing it right. (And I do mean pricing a home right and NOT underpricing it!)

Iowa City Real Estate Market Report - This report includes info on homes sold in Iowa City in September. (And contrary to national numbers Iowa City did well in September). Along with a look at the home sales for the 3rd quarter.

Iowa City Absorption Rate Analysis - What the absorption rate gives us is is insight on how the real estate market is trending. Whether we are in a buyers market, a sellers market or in a transitional or balanced market.

Coralville and Iowa City flow into a continguous area. You've all heard of Iowa City, but unless you live here chances are Coralville is not on your radar...

We've had some nice sunny autumn days, (in amongst all the rain) and I thought it would be a great idea to take some photos of downtown Coralville to show you all what a pretty little town this is. Overshadowed by big brother Iowa City I thought this would be the perfect opportunity put the limelight on Coralville. If you're relocating to the area, because of the University of Iowa or UI Hospitals, OR you're thinking of moving here to retire, Coralville is worth a second look. The latter may not be intuitively obvious, but folks who are retiring are impressed by the many medical facilities we have in the area, plus the focus on "green living" with lots of parks, walking trails and a very good public transport system. Not to mention the many senior progams available. As if that wasn't enough, we're less than 4 hours away from both Chicago and Minneapolis making weekend getaways an easy commute.

Okay, so enough talk, here are the photos:

Intersection at 5th St and 12th Ave, downtown Coralville

Coralville Public Library located on 5th St in Coralville, right in front of the Aquatic Center and Morrison Park

Slide at the Aquatic Center, Coralville

Morrison Park, Coralville - Home to the Music in the Park Series most Thursday nights in summer

More pretty trees in autumn... Morrison Park has more - here's a link to info on the sports facilities

These photos are of downtown Coralville and as you can see, surprisingly green for downtown! If you're interested in learning more about Coralville just drop me an email or give me a call. In the meantime, I figured if you are thinking of relocating to the area you might like to know how the housing market is doing. Below is a link to my market report for the third quarter.

Coralville Real Estate Market Report September 2009

Selling Your Home in the Iowa City Real Estate Market - What do you think is the most important aspect to getting it sold?

I was recently asked the question whether marketing or price are more important when it comes to selling a home. It got me thinking. Ultimately we all know it is a combination of both, but the question was interesting, because it forced me to consider them separately.

So what is the most important aspect to selling a home in Iowa City? In my opinion it's price. If you take a look at my absorption rate analysis from last week you'll see the market is turning and we are trending away from the buyers market and towards a more balanced market. The fact is though that buyers are still looking for deals and our market is still driven by price.

So what? You may ask. If it's properly marketed, even if it's priced higher, a nice house will rise above the competition and sell anyway. Wrong. Buyers are bargain hunters, they will walk straight past a higher priced home and go for the deal almost every time. No amount of marketing will help you there. Is there a slight chance that your home will sell at a higher price? Of course there is - if you get lucky and the stars are aligned right! Personally I think "luck" is something you need when you go to the casino, not when it comes to selling your home. When it comes to selling your home you need a plan. And the plan is to price it right on day one. Don't be tempted to test the market with a higher price and reducing it later either. Buyers are very savvy, (or they're working with savvy buyers agents) - They will notice and the time on market will be reflected in the offer.

So how exactly do you go about pricing your home correctly for the market? You need to find the "sweet spot." Not too low, not too high, but right there where it should be! This is pretty difficult to do on your own and maybe one of the most important reasons to work with an agent. Me, I'm a data freak. I do monthly reports that show how the market is trending. I also look at the absorption rate for homes in the area. And when it comes to advising you on a listing price for your home I'll use a combination of this kind of data along with any other factors I might consider important about your particular situation.

Sometimes I think sellers are skeptical when they hear about pricing a home right and think that's code for pricing it lower than the market. Not so. When it comes to listing a home I'm as much against underpricing a home as I am overpricing it. If I'm representing a buyer, then I want them to get the lowest price possible. For sellers I am shooting for the highest price possible. (That's also why I don't like dual agency, but I guess that's a topic for a different post). The point being, I know the market, but have no influence on it. I analyze the data and advise you what you can expect when you sell your home. Sometimes you will like what you hear. Other times maybe not so much. Either way you will have the information you need to make a decision...

Right now, you heard it here... Pricing your home right is the most important aspect to getting your home sold in the Iowa City real estate market.

I also help clients in Coralville and North Liberty. For your reference below are links to market reports and absorption rate analysis reports for those areas.

Coralville Real Estate Market Report September 2009

North Liberty Real Estate Market Report September 2009

Coralville Real Estate Market - Absorption Rate Analysis

North Liberty Real Estate Market - Absorption Rate Analysis

North Liberty Real Estate: Knowing the absorption rate helps us figure out trends in the market based on supply and demand.

After posting my quarterly report at the beginning of the month I decided more information is better... My two previous posts covered the absorption rate for homes sold in Iowa City and Coralville. Today North Liberty is under scrutiny. If you've never heard the term absorption rate, let me just clarify that it is a mathematical calculation to help project how long it is likely to take for a home to sell in any given area.

Why should you care about the absorption rate? It will probably help you when it comes to making a buying or selling decision down the road. The absorption rate will give you clues on whether North Liberty is currently a buyers market, a sellers market or a balanced/transitional market. As an example to where it's useful, together with other data this is a valuable tool for Sellers when it comes to figuring out how to price a home before putting it on the market.


I'll start with a calculation of the absorption rate for single family homes / Zero Lots in North Liberty in the price range $100,000 - $300,000:

The first step is to determine the number of homes sold in the past 12 months and how many are currently on the market.

There were 324 homes sold in the last year and there are currently 141 showing as active listings.

324/141 = 2.3 - That means the inventory of homes turned 2.3 times in the last 12 months.

Now we take the 12 months and divide it by 2.3 to come up with the absorption rate.

12/2.3 = 5.2 months = 158 days

The absorption rate of the Coralville market for a home in this price range is 5.2 months or 158 days.

So what kind of market do we have? 6 months is considered a balanced or transitional market. When the average time on market is less than 6 months it would be considered a sellers market and when homes are on the market for more than 6 months, then it's a buyers market.

An absorption rate of 5.2 months is certainly trending towards a sellers market in North Liberty. Obviously encouraging if you're thinking of selling your home in North Liberty anytime soon. Buyers sitting on the fence on the other hand may want to consider making a move. Looks like we're trending away from the buyers market.


That was data for single family homes. Moving onto condos... I looked at condos in North Liberty priced from $80,000 - $200,000.

New construction townhouse style condos are really popular in North Liberty, especially with folks relocating to the area for a few years - like Residents or Fellows with the UI Hospitals. Considering the popularity of North Liberty as an "insider tip" for price and value it's no surprise to see that even with condos, unlike Iowa City or Coralville, North Liberty is trending to a sellers market.

There were 230 condos sold in this price range in the last year and 93 are showing as active.

230/93 = 2.5 - Inventory for condos in this price range turned 2.5 times in the last year.

12/2.5 = 4.8 months = 144 days.

The absorption rate of a condo in this price range in North Liberty is 4.8 months or 144 days.

Now for a quick disclaimer: If you're thinking of selling your home in North Liberty, this data is time sensitive and needs to be looked at again whenever you decide to list your home. Also, I picked homes in popular price ranges to give you a general idea of trends. Especially when you're selling your home it makes more sense to do a targeted absorption rate analysis and that's something I do at the same time I prepare a comparative market analysis.

Iowa City Real Estate Market Update 3rd Quarter September 2009

Coralville Real Estate Market Update 3rd Quarter September2009

North Liberty Real Estate Market Update 3rd Quarter September 2009

Keeping it short is something I struggle with so Lisa's post was definitely must read for me. She's absolutely right, most of us scan articles on the web, so why not make our posts scannable? Of course easier said than done - hence the extremely helpful examples!

Coralville Real Estate: Knowing the absorption rate helps figure out trends in the market.

After posting my quarterly report at the beginning of the month I decided more information is better... Yesterday I posted the calculations I made to come up with the absorption rate for homes sold in Iowa City. Today it's Coralville's turn. If you've never heard the term absorption rate, let me just clarify that it is a mathematical calculation to help project how long it is likely to take for a home to sell in any given area.

Why should you care about the absorption rate? It will probably help you when it comes to making a buying or selling decision down the road. Knowing the absorption rate will give you an idea whether Coralville is currently in a buyers market, a sellers market or a balanced/transitional market. Sellers will find this really interesting as it's a great tool to help decide how to price a home before putting it on the market.


I'll start with a calculation of the absorption rate for single family homes / Zero Lots in Coralville the price range $100,000 - $300,000:

The first step is to determine the number of homes sold in the past 12 months and how many are currently on the market.

There were 148 homes sold in the last year and there are currently 78 showing as active listings.

148/78 = 1.9 - That means the inventory of homes turned 1.9 times in the last 12 months.

Now we take the 12 months and divide it by 1.9 to come up with the absorption rate.

12/1.9 = 6.3 months = 192 days

The absorption rate of the Coralville market for a home in this price range is 6.3 months or 192 days.

So what kind of market do we have? 6 months is considered a balanced or transitional market. When the average time on market is less than 6 months it would be considered a sellers market and when homes are on the market for more than 6 months, then it's a buyers market.


That was data for single family homes. The condo market looks a little different and it seems when it comes to condos in Coralville we still have a buyers market. I looked at condos priced from $80,000 - $200,000.

There were 48 condos sold in this price range in the last year and 30 are showing as active.

48/30 = 1.6 - Inventory for condos in this price range turned 1.6 times in the last year.

12/1.6 = 7.5 months = 227 days.

The absorption rate of a condo in this price range in Coralville is 7.5 months or 227 days.


Now for a quick disclaimer: If you're thinking of selling your home in Coralville this data is time sensitive and needs to be looked at again whenever you decide to list your home. Also, I picked homes in popular price ranges to give you a general idea of trends. Especially when you're selling your home it makes more sense to do a targeted absorption rate analysis and that's something I do at the same time I prepare a comparative market analysis.

Here's my latest post for the absorption rate in North Liberty.

Iowa City Real Estate Market Update 3rd Quarter September 2009

Coralville Real Estate Market Update 3rd Quarter September2009

North Liberty Real Estate Market Update 3rd Quarter September 2009

Iowa City Real Estate Market Trends: Knowing the absorption rate helps figure out trends in the market.

After posting my quarterly report at the beginning of the month and being something of a data freak I've decided it's time to kick it up a notch and provide you even more data on our market. Today I researched the absorption rate for homes in Iowa City. If you've never heard the term absorption rate, let me just clarify that it is a mathematical calculation to help project how long it is likely to take for a home to sell in any given area.

Knowing the absorption rate will provide insight on whether an area is currently in a buyers market, a sellers market or a balanced/transitional market. This of course is really helpful to know for sellers as it's a great tool to help decide how to price a home before putting it on the market.


I'll start with a calculation of the absorption rate for single family homes / Zero Lots in Iowa City in the price range $100,000 - $300,000:

The first step is to determine the number of homes sold in the past 12 months and how many are currently on the market. There were 466 homes sold in the last year in this price range and there are currently 217 showing as active listings.

466/217 = 2.1 - That means the inventory of homes turned 2.1 times in the last 12 months.

Now we take the 12 months and divide it by 2.1 to come up with the absorption rate.

12/2.1 = 5.7 months = 171 days

The absorption rate for homes in this price range in Iowa City is 5.7 months or 171 days.

So what kind of market do we have? 6 months is considered a balanced or transitional market. When the average time on market is less than 6 months it would be considered a sellers market and when homes are on the market for more than 6 months, then it's a buyers market.

What we gain from this data is confirmation that Iowa City with 5.7 months is pretty balanced, perhaps trending towards a sellers market. Quite encouraging data for anyone thinking of selling a home in Iowa City right now. Buyers sitting on the fence on the other hand may want to consider making a move. Looks like we're trending away from the buyers market.


That was data for single family homes. The condo market looks a little different and it seems when it comes to condos in Iowa City we still have a buyers market.

I Looked at condos priced from $80,000 - $200,000

There were 214 condos sold in the last year and 157 are showing as active.

214/157 = 1.4 - Inventory for condos in this price range turned 1.4 times in the last year.

12/1.4 = 8.6 months = 258 days.

The absorption rate for condos in this price range on the Iowa City market is 8.6 months.

Now for a quick disclaimer: If you're thinking of selling a home in Iowa City, this data is time sensitive and needs to be looked at again whenever you decide to list your home. Also, I picked homes in popular price ranges to give you a general idea of trends. Especially when you're selling your home it makes more sense to do a targeted absorption rate analysis and that's something I do at the same time I prepare a comparative market analysis.

Here are links to posts for the absorption rate in Coralville and North Liberty.

Iowa City Real Estate Market Update 3rd Quarter September 2009

Coralville Real Estate Market Update 3rd Quarter September2009

North Liberty Real Estate Market Update 3rd Quarter September 2009

Mark your calenders, Halloween is almost here. In fact Iowa City children can get a head start on things at the Halloween Parade and Carnival on Friday Oct 23, 2009.

Iowa City Parks and Recreation are inviting children of all ages, (along with their parents) to participate in the Halloween Parade. It will start at the Weatherdance Fountain in downtown Iowa City at 6.15pm and head east on College Street to the Robert A Lee Community Recreation Center. At the recreation center children will be able to participate in Halloween themed carnival games. Looks like they have some fun stuff lined up, including cookie decorating, face painting and a haunted hallway.

There's no charge for all this fun and all you need to do is show up to participate. The City does want all children to be accompanied by an adult. This info comes from the City of Iowa City website. In the event of rain, the parade may be canceled, but the fun will still continue at the recreation center.

It's Friday and time to chime in the weekend. Normally my post is about new movies coming out. That was getting boring so I decided it's time to diversify and include other events in Iowa City to pep it up a bit. We live in a really vibrant little town with loads going on, I've just picked a few things that caught my eye this weekend October 16 - October 18.

Let's start with movies, since that is the most popular activity, at least when it comes to families at the weekend. New releases Where the Wild Things Are, Spike Lee's adaptation of the classic children's book, The Step Father and Law Abiding Citizen with Jamie Foxx. If you'd like more info about these movies, rottentomatoes.com is one of the best websites out there, (once you get past the ads). Take what they have to say with a pinch of salt though, they didn't like Couples Retreat last week and it did just fine at the box office. (Of course it was helped by the fact it had no competition as the only new release last week, but that's me being picky). Here are the schedules for the Sycamore and Coral Ridge Mall movie theaters.

Moving on... If you like the theatre we have a couple of great offerings this weekend. The first is Footloose at the Englert theatre. It's a production of the 80's hit by the Young Footliters. The Young Footliters is a non-profit organisation run by parents to encourage and support a positive singing and acting experience for young people from kindergarten to K12 in the Iowa City area. Great idea, don't you think? Great choice with Footloose too. Can't beat the music in that show.

Now the other show is going with the spirit of Halloween... Zombie Prom is starting this weekend... "Imagine Michael Jackson's "Thriller" music video paired with poodle skirts, prom dresses and zombies" That's a direct quote from the Daily Iowan, our University newspaper, where you'll find the rest of the article about this zany show directed by my friend Jeff Shields at the Iowa City Community Theatre. Guests are encouraged to dress up in costume for the show. That should be fun.

Before I wrap things up I want to mention Iowa City's best live entertainment venue, as voted in the Press Citizen's Best of the Area List. You can't beat The Mill for entertainment. Check out the schedule. There's always fun stuff going on there and this weekend is no exception.

Prairie Lights Bookstore is also on that Best of Area list and as someone who just loves books I have to give the last word to them in my round up here today. They often have guest readings and are definitely worth bookmarking.