Inventory Challenges Appear In Iowa, Optimism Continues Through Summer

Increasing interest rates and lower-than-normal inventory created a hesitant market in Iowa at mid-year. However, these small hiccups have not dampened the market’s resolve, with glimmers of traditional summer market levels on the horizon. 

“The national housing market continues to see some signs of strain and the Iowa market is not immune to many of these issues,” Krista Clark, IAR president, said. “Despite these lower-than-traditional figures, these are not new issues. The Iowa housing market is resilient and buyers and sellers know they are in capable, knowledgeable hands when using REALTORS. We know that good news is on the horizon when it comes to local markets.” 

Single-Family Homes
The Iowa housing market continued to follow the wider national trend with a slight decline in available inventory. With 3,700 homes on the market, July saw a 12.3% decrease in inventory from the prior year. The same was true for a month over month comparison, as July’s inventory represented a 12.5% decrease from June. 

Home sales saw a fairly stark decline - at 20.5% - year-over-year with 3,011 homes sold in July, compared to the 3,788 sold the year before. The decline was similar for monthly metrics, a 20% decrease from the 3,765 homes sold last month. 

The pending sales of 2,915 homes in July was a 17.9% decrease from the 3,552 pending sales reported in July 2022. The decline was more subtle when compared to last month, with July pending sales at a 9.5% decrease from the 3,222 pending sales of June. 

The days on the market increased year-over-year to 33 days compared to the 23 day average of July 2022. Median sales prices increased 4.4% year-over-year to $235,000. 

Townhomes and Condos
The housing market for townhomes and condos saw a slight revival in July, with many metrics improving from the previous year. 

New listings increased 3.2% with 549 homes on the market compared to the 532 of July 2022. The increase carried over to monthly metrics, representing a 8.2% increase from the 507 properties listed last month. 

Year-over-year sales hit a low spot with 467 townhomes or condos sold in July, a 17.3% decrease from the 565 properties sold a year prior.  Monthly, the metric was also a decrease of 18.3% from the 572 homes sold last month. 

Pending sales saw a small bright spot, with 462 homes sold in July, representing a 2.7% increase compared to July 2022. The figure was a bit lower than June, a 1.9% decrease from the 562 townhomes and condos sold. 

Days on the market once again increased for townhomes and condos. On average, the properties were listed for 55 days, an increase of 34.1% compared to the 41 days on market last year. Median sales price also increased, this time by 2.6% year-over-year to an average of $245,000.

Statewide Market Report for July
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 July Housing Trends Report was current as of August 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.

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

Related Articles

Buyer Agreement: What You Need To Know

February 12, 2024

AI is Here, What you Need to Know.

September 21, 2023

Few Bright Spots Shine in August Housing Market

September 21, 2023