As the summer season waned, so too, did the Iowa Housing Market in September with declines in nearly all metrics measured by the Iowa Association of REALTORS®. The dip in metrics follows national trends, a result of higher interest rates, lower inventory and rising prices. While the trajectory might at first appear dismal, there are glimmers of hope. The market continues to create competition for prospective buyers, a welcome sign for sellers, with bidding wars and some homes selling above asking price.
“As Iowans fall back into their routines with school starting, many aren’t looking to uproot and the September housing market is a reflection of that,” Krista Clark, IAR president said. “Still, we’re seeing a competitive market for those who are looking for a change. We encourage prospective buyers and sellers to reach out to their trusted REALTOR® to examine their options when jumping into the market.”
Single-Family Homes
Following national trends, the Iowa housing market saw a dip in available inventory in September. The 3,418 homes on the market represent a 6.8% decrease from the 3,667 homes on the market one year ago. The change was similar for monthly metrics, with available inventory decreasing 13% from August.
Home sales continued a downward trend in September, showing a 19.2% decline compared to home sales one year ago. Month-over-month sales remained down. The 2,852 homes sold in September was a 13.3% decrease from last month.
The pending sales of 2,408 homes in September represented a 18.8% decrease from one year ago. The decline was a bit smaller for monthly metrics, creating a 15.9% decrease from August’s pending sales.
The days on the market increased year-over-year to 35 days compared to the 30 day average of September 2022. Median sales prices increased 7.6% year-over-year to $220,000.
Townhomes and Condos
The market for townhomes and condos in Iowa resembled the single-family home market in September, showcasing mostly declines in sales and inventory.
With 477 new listings, the townhouse-condo market saw a decrease of 9.1% from the 525 homes on the market in September 2022. The margin was wider for monthly metrics, an 11.9% decrease from the listings posted in August.
Year-over-year sales declined slightly by 14% in September compared to the 493 sales completed in 2022. With 424 properties sold, the metric was 12.4% decrease from homes sold in August.
Pending sales were similar for townhomes and condos. The 346 pending sales in September represented an 8% decrease from last year and a 15.4% decrease from the number of pending sales recorded in August.
Days on the market increased for townhomes and condos last month, going from 41 days on the market in September 2022 to 55 this year. Median sales price increased, by 6.7% year-over-year to an average of $256,354.