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(Des Moines, IA) -- Home buying activity in Iowa is cooling. Sales fell 28-percent in July compared to a year ago. The Iowa Association of Realtors says the slow-down is due to rising interest rates, rising home prices, and inflation. The median sales price rose 17-percent to a record 239,900. The realtors say homes continue to sell quickly, within an average of 24-days on the market.
“The housing market in Iowa definitely cooled off in July. A combination of rising mortgage rates, inflation, and rising home prices decreased the demand of buyers. The current conditions favor home sellers with the increase in sales price and houses are still selling quickly, with days on market for single-family homes reaching a record low of 21 days in July. We recommend potential buyers or sellers find a professional Realtor® to help be their guide during these unusual market conditions,” stated IAR President Byron Menke.
The Iowa Association of Realtors says 3,707 homes sold in July 2022. In July 2021, 5,189 properties were sold. For the first seven months of 2022, Iowa has experienced a 8.5 percent decline in sales compared to the same period in 2021.
The number of homes available for sale continue to increase after record low numbers this Spring. Our inventory of homes was 19.4 percent lower than in July 2021 with 7,525 homes on the market statewide.