Housing inventory continued to bloom in May as the Iowa housing market saw a generous increase in available homes for sale, giving prospective buyers a litany of choices as they work with their trusted REALTOR®.
“The spring season proved to be a buoy for the Iowa housing market with increases in nearly all metrics tracked by Iowa REALTORS®,” Shaner Magalhães, IAR president, said. "Inventory is significantly outpacing the previous year, meaning that prospective buyers have more choice and sellers are jumping into the market as we reach our typically busy summer months. Now is the time for those on the fence to begin contacting their REALTORS®.”
As has been the case for several months, inventory saw a boost in both new listings and overall available homes in Iowa. New listings 4.1% with 4,262 homes hitting the market in May compared to the 4,094 entering the market one year ago. Monthly, new home inventory increased 4.7% from the 4,068 homes newly listed in April. Overall, Iowa saw 7,104 available homes on the market in May, an increase of 36.1% from last year, and a 9.4% increase from May 2023.
Sales continued to trend upward in May with 3,306 homes sold, a 3.9% increase from last year’s 3,183 recorded home sales. The increase was more significant on a monthly basis, jumping 20.3% from the 2,749 homes sold in April.
Pending sales, on the other hand, staggered. The 3,003 pending sales of May represented a decrease of 12% compared to the 3,412 pending sales of one year ago. Monthly the decrease was slimmer at 6.9% compared to the 3,226 pending sales of April.
Days on the market increased 4.9% to 43 days in May compared to the 41 days of one year ago. The median sales price jumped 5.8% in May to $238,000 from the $225,000 median price last year at this time.
Townhouses and Condos
The townhouse and condo market provided a mirrored image of single family homes in May, seeing increases in nearly every measured metric.
The number of townhomes and condos joining the market in May increased 7.3% with 648 new properties joining the market compared to the 604 that did so in May 2023. The increase was exactly the same month-over-month, with a 7.3% increase from the 604 homes added just last month. Overall, inventory in the area outpaced 2023 again, jumping 26.1% from the 1,209 condos and townhomes listed in May 2023 to 1,524 listed in total for May.
Closed sales increased 20.2% in May with 523 properties sold compared to the 435 closeds sales of May 2023. The increase came to 28.8% monthly when compared to the 405 properties sold in April.
Pending sales continued to lag in May. The 477 pending sales of townhomes and condos represented a 6.8% decrease from the 512 pending sales of May 2023. The pending sales of May represented a miniscule increase - 1.4% - compared to the 470 pending sales of April.
Days on the market increased 29.8% to 74 days compared to the 57 days recorded last year. Median sales price jumped 3.1% to $249,950 in May from the $242,500 median price of 2023.
“The spring selling season is wrapping up with favorable results, giving Iowa REALTORS® optimism that upticks in inventory and sales will continue as we traverse the busy summer months,” Les Sulgrove, statewide housing analyst, said. “Buyers and sellers looking to jump into the housing market this summer should begin the process of pre-approval and contact their REALTOR® of choice.”
The information used to create the IAR May Housing Trends Report was current as of June 17. 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.