The onset of colder weather cooled the Iowa housing market in October. Following national housing trends, Iowa saw a decrease in sales, but experienced a welcome increase in new listings. The new inventory provides a double dose of good news: those searching for their new homes are seeing a bit more choice, while those listing continue to see competitive offers.
“While Iowa isn’t immune to the national trends of higher interest rates and climbing sales prices, our housing market continues to provide a wealth of opportunities for buyers and sellers,” Krista Clark, IAR president said. “The fall is when we typically see a cooling of the market and that’s true this year. However, we’re seeing signs that mortgage rates have peaked and may be ready to level out. This provides opportunities for prospective buyers and sellers who should reach out to their trusted REALTOR® to explore the opportunities before the typically hectic spring market.”
While inventory has been tight for much of the year in Iowa, September welcomed a slight increase in new listings with 3,422 newly listed homes, a 1.7% increase compared to the 3,364 listings one year ago. The metric is an increase of four from the 3,418 new listings recorded in September.
Home sales continued to decline in October: the 2,643 sales represent a 11.8% decrease from October 2022 and a 7.3% decrease from last month.
The pending sales of 2,466 homes in October represented a 6% decrease from one year ago. The opposite was true monthly, with October seeing a 2.4% increase from the 2,408 homes pending in September.
The days on the market increased year-over-year to 37 days compared to the 32 day average of October 2022. Median sales prices increased 8% year-over-year to $216,000.
Townhomes and Condos
The market for townhomes and condos in Iowa saw a few bright spots, out measuring a few of the single-family home metrics, specifically in inventory and pending sales.
With 463 new listings, the townhouse-condo market saw a 6.7% increase from the 434 new listings recorded in October 2022. The metric was the opposite month-over-month, with a 2.9% decrease from the 477 new listings of September.
Year-over-year sales declined by 18.5% in October compared to the 422 sales completed in 2022. With 344 properties sold, the metric was a 30% decrease from homes sold in September.
Pending sales brought a bit of a reprieve to the metrics. The 329 pending sales in October represented a 1.9% increase year-over-year. Monthly, the figures were down - a 4.9% decrease from September.
Days on the market increased for townhomes and condos last month, going from 45 days on the market in October 2022 to 66 this year. Median sales price increased, by 9.1% year-over-year to an average of $249,725.