The housing market began the year in a state of rebalance with many buyers and sellers remaining cautious while they wait to see where the market is headed. As a result, the number of homes sold and listed in January decreased in almost every metric tracked by the Iowa Association of Realtors.
“January is typically the slowest month of the year and often influenced by local weather events. We’re currently seeing that play out in Iowa,” Krista Clark, president of the Iowa Association of Realtors, said. “Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Additionally, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. These lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.”
Single-Family Homes
Cold weather, increasing interest rates and other factors led to a decrease in sales and listings for single-family homes in Iowa in January compared to the same time last year.
With a total of 2,318 new listings in January, the Iowa market saw a decrease of 11.5% compared to the same month in 2022 when 2,618 homes were listed. However, the 2,318 homes listed in January represent an increase from the 1,623 listed just one month prior.
Likewise, Iowa saw a drop in sales for January, with just 1,614 single-family home sales closed, a 32.1% decrease from the 2,376 homes sold in January 2022. Month-over-month, the market saw a similar decrease of 32.3% in sales.
The pending sales of 2,212 homes represents a decrease of 13.8% year-over-year, and increase of 29% from December. The days on the market increased to 48 days in January, compared to 38 days last month and 40 days in January last year. Median sales prices increased 4.7% year-over-year to $190,500.
Townhomes and Condos
The market for townhomes and condos in Iowa remained steady as we entered the new year. There were 461 new townhome and condo listings in January, representing a 4.8% increase when compared to the 440 properties on the market one year ago and a 87% increase compared to the 246 properties listed in December.
The number of townhomes and condos that sold in January declined significantly - approximately 42.2% - from one year ago, with just 197 properties sold compared to 341 in January 2022. The figures were similar month-over-month, representing a 38% decrease in sales.
Pending sales of townhomes and condos were more stable last month. With 340 pending sales, the month saw just a 7.9% decrease from the 369 pending sales the year prior. Compared to December 2022, pending sales saw a 52% increase.
Like single-family homes, days on the market increased for townhomes and condos. On average, the properties were listed for 56 days, an increase of 12% compared to the 50 days in January 2022 and 52 days last month. Median sales price increased 10.9% last month year-over-year to an average of $236,250.
View details of statewide market report for January
View housing market reports based on an Iowa county
For more information, please contact Ashlee Kieler, Director of Marketing and Communications - ashlee@iowarealtors.com
The information used to create the IAR January Housing Trends Report was current as of February 15. 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.