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(Des Moines, IA) -- It remains to be seen how this week's interest cut might impact home sales. Iowa realtors say they're encouraged by it. The Iowa Association of Realtors says inventory has been rising, so both buyers and sellers may be able to benefit from interest rate cut.
“As we transition into fall, the Iowa housing market is poised for positive developments. With an increase in inventory and anticipated interest rate drops, both buyers and sellers are in a strong position to capitalize on new opportunities,” said Shaner Magalhães, IAR president. “It's a time for collaboration—buyers can negotiate better terms, while sellers may see a surge in interested buyers. Now is the moment to engage with your REALTOR® to explore the possibilities.”
The realtors say inventory rose more than 23% in August, with 8,240 homes on the market compared to the 6,686 homes listed at the same time last year.
Home sales saw a 6.5% decline with 3,169 homes sold in August compared to the 3,391 homes sold one year ago. Home sales also decreased monthly by 0.7% compared to the 3,191 homes sold in July.
Pending sales continued a downward trend, dropping 6.9% in August with 2,841 pending sales versus the 3,050 pending sales of August 2023. The sales were just slightly lower monthly coming in at a 0.6% drop from the prior month.
Days on the market jumped 17.6% to 40 days compared to the 34 days home averaged last year. The median sales price jumped 5.5% to $286,714 compared to the $230,000 from last year.
“August statistics highlight a shifting landscape in the Iowa housing market, with an increase in inventory providing buyers with more choices than in previous years,” said Les Sulgrove, Iowa REALTORS® statewide housing analyst. “While home sales have seen a slight decline, the median sales price has risen, indicating continued demand. This environment presents unique opportunities for all individuals entering the market.”