Overall inventory remains the bright spot for the Iowa housing market as the summer buying and selling season kicked off in June. Iowa REALTORS® are optimistic that more available homes and slight decreases to interest rates will translate to a strong vibrant late summer market.
“Inventory continues to outshine other metrics in the Iowa housing market,” Shaner Magalhães, IAR president, said. "With strong spring and summer storms potentially dampening buyers’ ability to get out and view homes, we know that the market is poised to see interested parties to their new properties. Prospective buyers and sellers are encouraged to contact their trusted REALTOR® and explore the newly boosted inventory of homes.”
Inventory of homes for sale continues to grow in Iowa, providing more variety and opportunities for prospective buyers. In June, overall inventory climbed 4.4% in June with 7,417 homes on the market compared to the 7,104 homes listed in May. Yearly, the increase was a 31.8% increase from the 5,626 homes listed in June 2023.
New listings, however, took a slight downturn in June, decreasing 9.2% with 3,871 homes entering the market compared to the 4,262 that joined the market last month. The decrease was nearly identical when viewed yearly; June's new listings accounted for a 9.2% decrease from the 4,464 houses that joined the market in June 2023.
Sales took a slide in June with 3,228 homes sold, a 17% decrease from last year’s 3,887 homes sold. The decrease was also recorded monthly, representing a 2.3% dip from the 3,306 homes sold in May.
Similarly, pending sales staggered. The 2,914 pending sales of June lead to a 15.5% drop from the 3,449 pending sales of one year ago. Monthly, the drop was slimmer, representing a 2.9% decrease from the 3,003 pending sales of May.
Days on the market increased 11.4% to 39 days in June compared to the 35 days a year ago. On the bright side the days on the market dropped from the 43 days recorded in May. The median sales price jumped 6.4% in June to $250,000 compared to the $235,000 median price of last year.
“While we’re seeing more inventory overall in Iowa, we know that affordability affects demand, which could be the reason we’re seeing fewer homes being listed in June,” Les Sulgrove, statewide housing analyst said. “Interest rates are trending down, however, and that brings optimism that the later summer housing market will flourish.”
Townhouses and Condos
The townhouse and condo market closely mirrored that of the single-family market in June, with the exception of new listings.
The number of townhomes and condos joining the market in June increased 7.2% from 2023 with 567 new listings compared to the 529 that joined a year ago. Despite the increase yearly, new listings fell 12.5% when compared to the 648 townhomes and condos that joined the market in May.
Overall, inventory in the area outpaced 2023 again, jumping 28.3% from the 1,210 properties listed in June 2023 to the 1,552 recorded in June 2024. Monthly the jump was 1.8% from the 1,524 listed in May.
Closed sales decreased 17.6% in June with 488 homes sold compared to the 592 of last year. The decrease came to 6.7% when viewed from month to month.
Pending sales also lagged in June. The 454 pending townhome and condo sales represented a 6% decrease from the 483 properties sold in June 2023. The pending sales decrease monthly was slight; a 4.8% decrease from the 477 pending sales of May.
Days on the market increased 11.3% to 59 days compared to the 53 days recorded last year. However, days on the market showed a stronger decrease of 20% from the 74 days on market recorded in May. Median sales price jumped 2% to $249,990 in June from the $244,995 median price of 2023.
Relief Grants Available to Homeowners, Renters Affected by Severe Weather
Severe storms, flooding and tornadoes have devastated many parts of Iowa this spring and summer. More than two thousand residences and other property were damaged during these weather events, significantly impacting the housing for thousands of Iowans.
The REALTORS® Relief Foundation has awarded Iowa REALTORS® three grants totaling $900,000 to assist Iowans as they recover. These funds can help individuals who have been impacted by the severe storms with housing costs due to displacement up to $2,500 per household.
Displaced Iowans could be eligible for up to $2,500 in relief grants. Application guidelines for specific weather events can be found here.
The information used to create the IAR June Housing Trends Report was current as of July 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.
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 8,200 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.