Iowa Housing Market Springs to Life in March: Rising Inventory, Faster Sales

The Iowa housing market showed clear signs of spring and its transitional increases in activity in March. While economic uncertainty resulted in fluctuations of many markets, the housing market across the state proved that buyers and sellers remain optimistic and ready for their next move. 

“Despite economic uncertainty and shifting market dynamics throughout the state, overall Iowa's housing market through March is showing continued signs of a strong spring in real estate. The first quarter ended with rising inventory, faster sales, and  an increase in median sale price, supporting the conversation that there is a renewed confidence from buyers and sellers,” Travis Bushaw, Iowa REALTORS® president said. 

Single-Family Home Market 
“Homes entering the market remained mostly flat in March compared to the same time in 2024, tallying a 0.1% increase with 3,861 new listings added during the month. The largely unchanged figure is likely a result of sellers waiting out the heavy winter months and lingering cold weather before officially listing properties,” said Les Sulgrove, Iowa REALTORS® statewide housing analyst. 

Monthly, new listings jumped 37.9% from the 2,800 new listings of February, proving that while cold temperatures may have kept many on the sidelines, inventory is blooming for the spring market. 

Active listings saw a 22% increase with 7,411 properties listed statewide compared to March 2024. The increase was more stable monthly, rising 2.5% from February’s 7,228 active listings. 

Closed sales experienced a slight drop year over year, decreasing 5.3% from 2,508 sales in March 2024 to 2,369 homes sales last month. Conversely, the market was more active month-to-month, resulting in a 27.8% increase from February’s 1,855 home sales, a clear sign that the spring market is heating up. 

Median sales price increased 6.2% from last year’s metrics to $239,000. A similar fluctuation was seen month-over month. 

Perhaps the clearest sign that the housing market is picking up as we enter the spring months is the dramatic shift in days on the market. Homes are spending a median of 12 days on the market in March, a 45.5% drop from 22 days recorded in February. As with previous metrics, the monthly decrease is a contrast to that of the market a year ago when homes spent a median of 9 days on the market. 

Condo-Town Homes 
The golden child of the housing market during covid, condo-townhome inventory has begun to see a drop in closed sales. In March, 341 properties sold, a decrease of 5% from the 359 sold a year ago. 

Sulgrove notes that the slip is indicative of increasing single-family home inventory. 

“During Covid years, there was a shortage of single-family homes and buyers shifted their focus to condos and townhomes,” he said. “Now as inventory continues to build in single-family homes, they are returning to a more balanced market place.” 

Inventory continued to increase for condo-townhomes, however. New listings climbed to 611 properties, a jump of 10.7% from a year ago, and active inventory came in at 1,764 a 28.1% increase from a year ago, 

Days on markets outpaced single-family homes, with properties seeing a median of 26 days on market, an increase of 160% from the same time in 2024. Median sales price was in-line with single-family homes at $238,000.

A Local Look
Iowa REALTORS® new statewide housing statistics program provides a closer look at housing markets around the state. Analyzing more urban markets, including Cedar Rapids, Des Moines and Ames areas, shows a landscape much like that of the state: increased activity. 

The Central Iowa Board of REALTORS® market, which encompasses 216 cities including Boone and Ames, saw inventory increase 40% with 413 new listings joining the market in March. 

The Quad Cities Area REALTORS® saw one of the lower median sales prices of the state at $174,000 highlighting the affordability of the area. Meanwhile, Cedar Rapids saw likely the lowest median days on market at 6 days, a sign that homes are entering the market and quickly being snatched up by buyers. 

The Des Moines area’s median sales price of $314,000 shows a leveling off of price, indicating the market will provide more opportunities for buyers of all price ranges. 

“If there’s one thing to be learned from the March housing statistics amid the uncertainty of the current economic climate, it’s that housing remains essential and both buyers and sellers aren’t quite ready to dismiss the opportunities blooming this spring,” Sulgrove said.