Iowa’s real estate market is exhibiting signs of stabilization, characterized by modest price appreciation, increased inventory, and extended time on the market. These factors collectively suggest a shift toward a more buyer-friendly environment.
🏡 Statewide Market Overview
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Median Sale Price: In April 2025, the median home sale price in Iowa reached $240,000, reflecting a 3.3% increase compared to the previous year.
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Average Home Value: The average home value stood at $227,579, marking a 3.9% year-over-year rise.
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Inventory Levels: The number of homes for sale increased by 10.1% year-over-year, with 3,116 homes sold in April 2025, a slight decrease of 0.89% from the previous year.
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Days on Market: Homes spent a median of 46 days on the market, up 10 days from the previous year, indicating a slower pace in sales.
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Sale-to-List Price Ratio: The median sale-to-list price ratio was 0.978, suggesting that homes are selling slightly below their asking prices.
🏘️ Regional Highlights
Des Moines Metro Area
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Market Dynamics: The Des Moines housing market is experiencing a shift, with over six months of inventory available, indicating a transition toward a buyer’s market. Sellers may need to adjust pricing expectations accordingly.
Townhomes and Condos
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New Listings: There was a significant surge in new listings for townhomes and condos, increasing by 42.1% to 601 listings, offering more options for buyers in this segment.
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Median Sale Price: The median sale price for townhomes and condos dipped by 3.9% to $226,000, providing more affordable options for buyers.
📈 Market Trends and Outlook
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Affordability: Iowa remains one of the most affordable states for homebuyers. As of March 2025, the average Iowan needs to work 39 hours per month to afford a new mortgage payment on a typical new single-family home, which is 15 hours less than the national average.
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Housing Shortage: The state is on track to eliminate its housing shortage within the next five years, with a deficit of 10,736 homes across Iowa in 2024. Current trends suggest this shortage will be resolved in three years.
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Market Outlook: Experts anticipate that Iowa’s housing market will hold steady with modest gains throughout 2025. Urban areas like Des Moines and Iowa City may experience sharper price increases, while rural areas are expected to remain consistent. Factors such as mortgage rate trends and the impact of changes in real estate regulations will influence the market’s trajectory.
🔮 Conclusion
Iowa’s real estate market in 2025 is characterized by moderate price growth, increased inventory, and extended time on the market, signaling a transition toward a more balanced or buyer-friendly market. Affordability remains a strong point, making Iowa an attractive option for first-time homebuyers and investors seeking stable opportunities. As the market continues to evolve, both buyers and sellers should stay informed and adapt their strategies to the changing dynamics.