Doug and Cindy Olney of Coralville have one main reason to look for a new home - their 3-year-old son.

Jody Gorsh with Steve’s Electric installs a smoke detector in new home on MacKenzie Lane in North Liberty. Doug and Cindy Olney will move into the house in mid-August. The Olney’s purchased the house before the foundation was poured. Press-Citizen/Jason A. Cook

"We've been saving for quite a while," said Olney, 39. "We needed more space."

Olney, his wife and son will move into their new home in the Quail Ridge subdivision in North Liberty when construction is finished in mid-August, joining the 1,448 families who have moved into new houses so far this year. The housing boom comes on the heels of last year, when 1,532 homes - new construction and existing houses - were purchased in Johnson County.

Contributing to this has been low interest rates, which continue to hover at about 6 percent. Peggy Doergh, vice president at the home loan center at Iowa State Bank & Trust Co., said many people are attracted to buying real estate because it is considered a safe investment.

"It used to be if you were below 7 percent, it was great," Doergh said. "If you have a lot of people flocking to those markets, the rates tend to stay down."

Looking for that dream home? Whether you are a first-time homebuyer or have done it all before, there are several things a person should and should not do during the process. They include: • Do talk to a lender and get prequalified for a home loan. This will help you know how much you can afford. • Do research on houses in the area you want to live in. This can include attending open houses, listings in newspapers and sites on the Internet. This also would include a look at the neighborhood, commute times and the schools. • Do find a good realtor. Talk to two or three agents so you can find one with whom you are comfortable. • Do save money for a down payment, if possible, as well as for incidental items like furniture and other costs. • Don’t run up a lot of debt. Debt can harm your credit rating, and lenders will make the loan based on your current credit situation. Source: George Klein of Ruhl and Ruhl Realtors

People continue to flock to the area, particularly Coralville and North Liberty.

There were 251 home sales in Coralville and 325 home sales in the North Liberty area through Tuesday to comprise nearly 40 percent of total sales in the county, according to the Iowa City Area Association of Realtors. Last year, the county saw 295 and 131 sales in Coralville and North Liberty, respectively, according to the Johnson County Assessor's office. The two towns accounted for about 28 percent of all sales in Johnson County last year.

There still will be plenty of interest throughout the rest of the summer, said Tom Kaut, a realtor with Iowa Realty. He said people like being in a community that is close to Iowa City and Cedar Rapids.

"There's a lot of inventory up there in North Liberty," Kaut said. "You really see this as a regional economy."

Being close to Iowa City and Cedar Rapids attracted Kevin and Jamie Stiers of Iowa City to buy their first house in North Liberty. Stiers said they wanted to upgrade into a bigger space from the condominium they own in Coralville while still being close to Cedar Rapids and Coral Ridge Mall.

Jody Gorsh works on the breaker box in Doug and Cindy Olney’s house in North Liberty. Press-Citizen/Jason A. Cook

"It seems like a nice community," said Stiers, 29. "We're getting ready to start a family in the near future, so we want to be ready."

The couple will move into their new house in the Quail Ridge subdivision at the end of this month.

The prices of the new houses, however, could turn some buyers off. Kaut said most of the new homes in the western part of the county, including west Iowa City, Coralville and North Liberty, averaged between $170,000 and $230,000. Older homes in southeast Iowa City remain priced between $160,000 and $180,000. The market for more expensive homes of more than $250,000 is smaller, he said.

"They are selling," Kaut said. "It's just taking a little longer. Anytime the price is under $200,000, it moves pretty good."

The future of the housing market is uncertain because of not knowing what the interest rates will be and higher construction costs. Particularly, there is a shortage of homes priced between $200,000 and $260,000, which normally are the third homes for families, said George Klein, a realtor with Ruhl and Ruhl Realtors.

"There's always a shortage in that range," Klein said. "The newer construction tends to be in the upper 200s. Materials are getting more expensive and land is more expensive."

Those people looking for cheaper housing now are looking at condominiums, which average about $100,000, Klein said.

"They seem to be selling as fast as they can build them," he said.