Iowa Housing Market Takes On Early Spring-Like Boost

A burst of spring-like air made for a housing market showing signs of blooming early this year. The Iowa housing market saw an uptick in nearly every metric tracked by Iowa REALTORS® in February, a welcome boost.

“The unseasonably warm temperatures in February, coupled with the falling interest rates we witnessed late in 2023, ushered in an equally surprising boom to the typically slower winter housing market across the state of Iowa,” Shaner Magalhães, IAR president, said. "As we prepare for even warmer temperatures and the traditionally busier spring buying and selling months, Iowans considering jumping into the housing market should begin by finding a trusted REALTOR in their area.” 

Home sales in Iowa increased 1.1% in February, with 1,731 homes sold compared to the 1,712 sold in February 2023. Monthly metrics were similar, seeing a 2.7% increase compared to the 1,685 homes sold in January. 

Pending sales made a slightly higher jump, increasing 6.9% with 2,463 pending sales recorded compared to the 2,303 of one year ago. Compared to January, the increase was more significant, showing a 22.9% jump from the 2,004 pending sales recorded last month. 

Following months of small increases, the number of new houses joining the market saw a significant increase of 28.3%. The 3,003 new listings recorded in February were more than welcomed by prospective buyers who only saw 2,340 new listings in February of 2023. The jump was 21.4% for month-over-month, with February’s listings easily surpassing the 2,360 recorded in January.

Days on the market also saw an increase of 7.7% from 52 days in February 2023 to 56 last month.

The median sales price jumped 11.8% in February to $218,000 from the $235,318 median price of last year.

Townhouses and Condos
The townhouse and condo market recorded similar strides than the single-family housing market in February, with the exception of closed sales. 

Closed sales decreased 20.8% in February with 202 properties sold compared to the 255 sold one year ago. The decrease was less noticeable month-over-month with a 8.9% downturn from the 224 properties sold in January. 

Pending sales, on the other hand, saw a 2.3% increase with 362 homes sold compared to the 354 sold in February 2023. A 25.2% increase was also realized month-over-month compared to the 289 properties pending in January. 

New listings jumped 21.3% in February. The 529 new listings represented a nice shift from the 436 new listings of one year ago. For monthly metrics, the increase came to 23.6% compared to the 428 new listings posted in January. 

Days on the market increased to 59 days in February from 56 days. Median sales price increased 6.1% to $231,250 from $218,000.

“Our optimism for the 2024 housing market is proving to be well-warranted as we begin to prepare for the spring buying and selling months,” Les Sulgrove, statewide housing analyst, said. “The market continues to show bright spots, and we anticipate more buyers and sellers will be contacting their REALTORS® as they consider their next housing move.”  

The information used to create the IAR February Housing Trends Report was current as of March 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 8,200 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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