The Iowa housing market kicked off 2025 with promising gains in key metrics, continuing the momentum seen at the end of last year.
According to a release from Iowa REALTORS, increased new listings, active inventory, and a steady number of closed sales reflect a healthy real estate environment for buyers and sellers across the state.
“The Iowa housing market as a whole had a strong start to 2025, with increased available inventory and active buyer engagement,” said Travis Bushaw, Iowa REALTORS president. “While we likely won’t see interest rates below 6% in the next twelve months, current buyer activity is leading us to believe that buyers have come to accept rates between 6% and 7% as ‘normal.’ Couple that with a slow down in the accelerated appreciation we’ve seen over the last five years, and barring any major interest rate spikes, the projections look very positive for 2025.”
Iowa REALTORS reports that the statewide housing market experienced notable gains in January, with 1,870 closed sales – an increase of 4.8% compared to January 2024.
New listings grew by 23.9% to 2,956 homes, providing more options for homebuyers.
Overall active inventory remained steady with 7,524 homes on the market, a 29.7% increase from the 5,807 active listings of one year ago.
The median sales price remained steady at $220,000, a 2.3% increase from last year. Days on the market increased 36% to 34 days, while the median sold price per square foot increased 5% $148 compared to a year ago.
The townhome and condo segment also reflected positive trends. New listings surged by 42.1%, to 601 listings, bringing more opportunities for buyers in this sector. However, closed sales saw a slight decrease of 1.8% year-over-year, with 214 sales recorded.
The median sales price for townhomes and condos dipped by 3.9% to $226,000. In January, properties spent an average of 35 days on the market – a significant increase of 66.7% compared to last year.
“With increased inventory and a steady median sales price, Iowa’s housing market is off to a solid start in 2025,” said Les Sulgrove, statewide housing analyst. “More available homes provide buyers with greater choices, making it an encouraging time for those entering the market.”
Iowa REALTORS is an advocacy group for more than 8,200 real estate professionals in Iowa, representing all facets of the industry.
