(Des Moines, Iowa) – Officials with the Iowa Association of Realtors, today (Thursday), said the Iowa housing market showed typical signs of a dwindling summer as Iowans settled into their homes for the beginning of the new school year. Anticipated drops in interest rates, coupled with increased inventory outweigh slight dips in metrics tracked by Iowa REALTORS® in August.  IAR President Shaner Magalhães says “As we transition into fall, the Iowa housing market is poised for positive developments. With an increase in inventory and anticipated interest rate drops, both buyers and sellers are in a strong position to capitalize on new opportunities. It’s a time for collaboration—buyers can negotiate better terms, while sellers may see a surge in interested buyers. Now is the moment to engage with your REALTOR® to explore the possibilities.”

Inventory of homes for sale continued to increase in August, allowing buyers a more robust market to investigate with their REALTORS®. Overall inventory jumped 23.2% in August with 8,240 homes on the market compared to the 6,686 homes listed at the same time last year. Monthly, the jump was 6.7% from the 7,721 homes listed on the market in July.
New listings also saw a slight climb in August as 4,088 homes joined the market, an increase of 4.6% from the 3,910 that were added in July. The increase was similar month-to-month, jumping 4.8% from July’s 3,893 new listings.  Home sales saw a 6.5% decline with 3,169 homes sold in August compared to the 3,391 homes sold one year ago. Home sales also decreased monthly by 0.7% compared to the 3,191 homes sold in July.

Pending sales continued a downward trend, dropping 6.9% in August with 2,841 pending sales versus the 3,050 pending sales of August 2023. The sales were just slightly lower monthly coming in at a 0.6% drop from the prior month. Days on the market jumped 17.6% to 40 days compared to the 34 days home averaged last year. The median sales price jumped 5.5% to $286,714 compared to the $230,000 from last year. According to Iowa Realtors statewide housing analyst Les Sulgrobe, “August statistics highlight a shifting landscape in the Iowa housing market, with an increase in inventory providing buyers with more choices than in previous years. While home sales have seen a slight decline, the median sales price has risen, indicating continued demand. This environment presents unique opportunities for all individuals entering the market.”

Townhouses and Condos
Overall inventory remained the bright spot for the townhouse and condo market in August. Inventory jumped 18.7% with 1,516 units on the market compared to the 1,277 of one year ago. Monthly, inventory decreased just slightly by 1.4% compared to the number of units on the market in July. The number of townhomes and condos joining the market in August dropped 6.3% with 519 homes listed compared to the 554 of last year. Monthly new listings remained flat.  Closed sales once again decreased, this time by 9.3% with 447 units sold compared to the 493 sold the prior year. Just ten fewer homes were sold in August compared to July.

Pending sales dropped 5.5% in August with 395 home sales pending, compared to the 418 of last year. Compared to July, pending sales dropped 2.5%.  Days on the market increased exponentially in August – 50% – to 72 days on the market compared to 48 days one year ago. Median sales price remained flat at $250,000. 5.5% to 58 days compared to the 55 recorded last year. Median sales prices stayed flat at $245,000 compared to last year.

The information used to create the IAR August Housing Trends Report was current as of Sept. 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.