The U.S. housing market experienced a turbulent 2022, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity nationally, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
In Iowa, New Listings decreased 28% for Single-Family Detached homes and 34.8% for Townhouse-Condo homes. Pending Sales decreased 42.1% for Single-Family Detached homes and 43.4% for Townhouse-Condo homes. Inventory increased 3.6% for Single- Family Detached homes but decreased 1.5% for Townhouse-Condo homes.
Median Sales Price increased 0.3 % over November to $190,500 for Single-Family Detached homes and 11.1 % over November to $225,500 for Townhouse-Condo homes. Days on Market remained flat at 38 days for Single-Family Detached homes but Townhouse-Condo properties sold a little slower at 53 days. December Months Supply of Inventory for Single-Family Detached homes was right at two months and Townhouse-Condo homes were just over 2.5 months.
“Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR,” Stated 2023 IAR President Krista Clark.
View Details Of Statewide Market Report For December
View the Detailed PDF Report on Statewide Statistics
View Housing Market Reports Based On An Iowa County
View Reports on Single-Family homes
View Reports on Townhouse-Condo homes
The information used to create the IAR December Housing Trends Report was current as of January 17. The information is subject to change due to the dynamic nature of the IAR’s housing statistics system, which is based on data from the local participating MLS (multiple listing service) systems.
The term Realtor® is a registered trademark, which identifies real estate professionals who follow a strict Code of Ethics as members of the National Association of REALTORS®.
The Iowa Association of Realtors® is the state’s largest real estate professional organization representing over 8,000 members and affiliates. The IAR releases a Housing Trends Report each month.
For more information, please contact Ashlee Kieler, Director of Marketing and Communications at the Iowa Association of REALTORS® - ashlee@iowarealtors.com
Sources: National Association of REALTORS®, Iowa Association of REALTORS®, Data from Multiple Listing Services in Iowa, and ShowingTime.