Few Bright Spots Shine in August Housing Market

While interest rates continue to complicate the national and local housing markets, Iowa saw a few bright spots in August, remaining fairly steady through the last of the summer.

“Inventory appears to offer a glimpse of improvement for the Iowa housing market in August,” Krista Clark, IAR president said. “However, increased interest rates and building home prices could prevent some buyers from making the leap into home buying. Still, those who are looking for their dream home can be comforted knowing that using a REALTOR will help demystify the ins and outs of the market, leaving them in good hands.”

Single-Family Homes
Despite inventory issues nationally, the Iowa housing market remained steady in August with just two fewer homes listed, representing a 0.1% decrease from August 2022. With 3,927 homes on the market, August saw a 6.1% increase in inventory month over month.

Home sales continued a downward trajectory in August, showing a 16.6% decline compared to home sales one year ago. Conversely, month-over-month sales were a bright spot. The 3,293 homes sold last month comprised a 9.3% increase from July 2023.

The pending sales of 2,865 homes in August was a 16% decrease from the 3,437 pending home sales of August 2023. The decline was much smaller month-over-month, showing a 1.7% decrease from the number of pending sales recorded in July.

The days on the market increased year-over-year to 34 days compared to the 24 day average of July 2022. Median sales prices increased 8% year-over-year to $230,000.

Townhomes and Condos
The housing market for townhomes and condos mimicked those of the single-family housing market in August with a mix of highs and lows.

With 542 new listings, the townhouse-condo market saw a decrease of 9.4% from the 598 homes on the market in August 2022. The margin was a bit slimmer for monthly metrics, a 1.3% decrease from the listings posted in July.

Year-over-year sales declined slightly by 10.9% in August compared to the 543 sales completed in 2022. With 484 properties sold, the metric was actually a 3.6% increase from July, when 467 properties were sold.

Pending sales were similar for townhomes and condos. The 409 homes sales pending in August represented an 18% decrease from the 499 pending sales of one year ago. The decrease was more dramatic monthly, representing a 11.5% decrease in pending sales.

Days on the market decreased by one day for townhomes and condos last month, going from 49 days on the market in August 2022 to 48 this year. Median sales price increased, by 2% year-over-year to an average of $251,900.

Statewide Market Report for August
View the Detailed PDF Report on Statewide Statistics

Housing Market Reports by Iowa County
View Reports on Single-Family homes
View Reports on Townhouse-Condo homes

The information used to create the IAR August Housing Trends Report was current as of September 18. 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.

Sources: National Association of REALTORS®, Iowa Association of REALTORS®, Data from Multiple Listing Services in Iowa, and ShowingTime.

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