Buyer Demand Remains Strong In Iowa Despite Tight Inventory

Inventory and pending sales remain the bright spots in the Iowa housing market in April. While most of the metrics tracked by the Iowa Association of REALTORS have continued a downward trajectory compared to 2022, slight increases in inventory and pending sales provide glimmers of the housing market the approaching summer months are accustomed to. 

“Housing inventory remains tight nationwide, but the Iowa housing market has seen a small rebound in added inventory this spring,” Krista Clark, IAR president, said. “Perhaps more telling is the number of pending sales taking place last month, which showcases that buyer demand remains strong despite being limited by fewer listings on the market. We’re optimistic that these small steps will contribute to a robust market in the state.”  

Single-Family Homes
True to form, the continuation of spring has brought more inventory to the Iowa housing market. April saw 3,532 homes listed, a 3.5% increase from the previous month. Despite the short-term increase, the housing inventory continues to wane compared to last year at this time. In fact, the number of new listings represents a 20% decrease from the 4,454 on the market in April 2022. 

Home sales took a small tumble in April with just 2,387 properties sold. The measure represents a 27.4% decrease from one year ago when 4,454 homes sold, as well as a 6% decrease from March’s 2,543 sold homes. 

The pending sales of 3,061 homes represents a 36.8% decrease from April 2022. However, pending contracts were a sign of progress for the short-game comparison, providing a 5.8% increase month-over-month. 

The days on the market increased year-over-year to 45 days compared to the 36 day average of April 2022. More recently the average days on market decreased from the average 52 days of March. Median sales prices increased 3.4% year-over-year to $215,000.

Townhomes and Condos
Much like previous months this year, the sales and listing of townhomes and condos in Iowa mimicked those of single-family homes, showing a decrease in nearly every measure year-over-year. 

New listings decreased 17% with 521 properties listed, compared to the 628 on the market last year. April’s market also represents an 11% decrease from the 587 properties listed in March. 

When it comes to townhomes and condos that sold in April, sales were down 18.3% from the previous year. April saw 370 properties sell, compared to 453 the year prior. Month-over-month, sales were up ever so slightly - 0.8% - with three more townhomes and condos sold compared to March. 

Like single-family homes, pending sales of townhomes and condos showed the starkest decrease in levels year-over-year.  Pending sales were down 37% year-over-year, with just 471 sales pending compared to the 748 of the prior year. However, also like single-family homes, month-over-month pending sales figures provide a bit of spring optimism - a 10% increase from the 427 pending sales last month. 

Days on the market increased significantly for townhomes and condos. On average, the properties were listed for 57 days, an increase of 90% compared to the 30 days on market last year. Median sales price once again increased, this time by 9.9% year-over-year to an average of $236,250.