Iowa Housing Market Gains Fall Momentum as Buyers Anticipate Rate Drops

The Iowa housing market showed signs of renewed activity in September sparked by anticipated interest rate decreases, while listing inventory continued to climb across the state offering buyers more options heading into the fall.  

“The September market statistics and our predictions for the coming months show what a healthy, balanced real estate environment looks like,” said Travis Bushaw, President of Iowa REALTORS®. “Even though the average 30-year mortgage interest rate is actually higher than it was at this time last year, the excitement about a rate dip seems to have spurred activity. Five straight months of rate reductions, along with slowed price appreciation, and a continued increase in inventory, has helped build buyer confidence.”

New listings in the single-family market jumped 7.2% in September to 4,176 listings from the 3,897 on the market one year ago. Monthly, new inventory also made a gain, increasing 2.9% from the 4,059 homes on the market in August.

Active inventory mirrored its counterpart, jumping 13.6% in September to 9,529 single-family properties available compared to the 8,395 of September 2024. The increases continued monthly, jumping 2.9% from the 8,978 active listings of a month ago. 

Sales provided a mixed bag across the state in September. While we saw 2,940 closed sales of single-family properties, a 5.9% increase from the 2,775 sales a year ago, the figure trailed by 14.4% compared to the 3,436 sales of August. 

Median sales price climbed 6.5% in September to $245,000 from the $230,000 of a year ago, but decreased 2.8% from a month ago when the median sales price was $252,000. 

Days on the market increased 25%, jumping to 20 days from the 16 days on market a year ago. The increase was more mild month-over-month, jumping 5% from August’s 19 days on market. 

The lack of a typical seasonal downturn in the fall brings promise of a continually strong housing market in Iowa, even as we enter the late season months of October and November. 

“Inventory continues to be the story of the season,” said Les Sulgrove, Statewide Housing Analyst for Iowa REALTORS®. “We’re seeing a steady increase in homes available statewide, which not only gives buyers more choice, but brings in line supply and demand of the market, creating opportunities for anyone looking to jump in.” 

Condo & Townhomes
The condo and townhome market remained balanced as we edge our way into a fall market.  New listings grew slightly, 0.5%  to 556 condo and townhomes from the 553 new listings of September 2024. Monthly, the figure increased more substantially by 5.7% from the 526 new listings of August. 

Active inventory continued to showcase the wealth of options available to buyers interested in condos and townhomes, increasing 13.6% to 1,835 from the 1,615 active listings of a year ago. Active listings corrected a drop in August, increasing 3% from the 1,783 listings active last month. 

Closed sales experienced a welcome jolt in September with 410 sales, a 19.5% increase from 343 sales a year ago. Conversely, sales dropped 8.7% month-over-month from the 449 sales recorded in August.  

Median days on market increased to 35 days in September, a 75% jump from the 20 days on market in 2024, and a 29.6% increase from the 27 days on market in August. Median sales price remained flat year-over-year  in September at $230,000, but decreased 3.2% from the $237,500 median sales price of August. 

A Closer Look 
Markets across Iowa reveled in strong inventory gains in September. While inventory levels continued to build, buyers and sellers working with REALTORS® began to see opportunities entering the fall season.

Southwest Iowa - home to Council Bluffs - saw a strong 13.2% year-over-year increase in median sale price, rising to $240,500, even as sales dipped slightly by 6.5% from September of 2024.

The Des Moines metro remained steady with a 5.2% price gain and a modest uptick in closed sales. In the Cedar Rapids and Iowa City corridor, active inventory climbed steadily, giving buyers a wider selection than in more recent fall seasons.

The Quad Cities experienced more moderate movement in September. Closed sales were nearly unchanged, down just 0.5%, suggesting a balanced buyer-seller environment heading into fall.

With interest rates beginning to trend downward this fall, Iowa REALTORS® is optimistic that activity could continue to strengthen into late 2025. Rising inventory levels set the stage for a solid fall season and a promising start to 2026.

“If mortgage rates continue to ease, affordability will improve, and we may see a busier-than-usual late-year market,” Sulgrove noted. “We’re entering a period of opportunity—especially for buyers who’ve been waiting for more options.”