Iowa Housing Market: Home Prices & Trends

Overview

Supply

Iowa Housing Market Overview

Home prices in Iowa show a small 2.2% YoY growth as of January 2025. The percentage of growth in home prices indicates the strength of the housing market. Currently, the median home price in Iowa is $226,900. Furthermore, the number of homes sold has increased by 9.1% YoY, indicating a good demand.

You can check the market competitiveness through median days on the market. Homes in Iowa now spend 54 days on the market before going under contract. This number has increased by 6 days YoY. This indicates that the urgency among buyers is on the decline. Together, these metrics indicate any shifts in the Iowa housing market's pace and affordability.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: The good news for you is that home prices in Iowa are increasing at a very slow pace. Values have crawled up to the current median of $226,900, reflecting a small 2.2% increase from last year. Houses in Iowa for sale now stay on the market for longer, which means you have more time to evaluate your options and lock in your dream Iowa house.
If You're a Seller: Your property enters a market that's seeing sluggish price growth. Nevertheless, the 9.1% YoY increase in the number of homes sold signals a strong demand for Iowa houses. However, given homes in Iowa for sale are spending longer on the market, it's key to price your home right. Also, you should stage and market your home strategically.

Iowa Housing Supply

Iowa's housing supply is expanding as inventory is increasing, making this balanced market tilt towards buyers. The number of homes in Iowa for sale has grown by 21.1% year over year in January 2025, hitting 11,112 available properties. Moreover, the number of newly listed homes has increased by a massive 27.1% YoY, with 2,871 homes currently listed. Despite this, the 4 months of supply favors sellers; demand remains strong with solid competition.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: The fast-increasing number of houses in Iowa for sale means more options for you. You have a great chance to find a property that suits your needs. But with 4 months of supply, competition remains high. You should act quickly on well-priced homes because, despite rising prices, you have more time to negotiate compared to other markets.
If You're a Seller: Although real estate in Iowa continues to see price growth, the 21.1% increase in inventory can potentially reduce your profits. The 4-month supply period may favor you, but the increase in new listings indicates that demand might drop soon. So, price your home correctly in order to attract serious buyers and sell your home fast.

Iowa Housing Demand

The percentage of homes in Iowa selling above the list price is an important measure of housing demand. In January 2025, 16.9% of homes sold above the asking price, a negligible YoY decrease. Meanwhile, 25.5% of homes saw price drops. This percentage has increased by 5.9 points since last year. Both these factors point to an easing demand.

The 96.7% sale-to-list price ratio, slightly down since last year, indicates that while sellers are still receiving competitive offers, buyers have more negotiating power. This trend reflects a balanced but competitive market.

What Does It Mean for Home Buyers and Sellers?

If You're a Buyer: In January 2025, more Iowa homes sold below the listing price than above. This trend signals opportunities for you to negotiate a good deal. The slight decrease in sale-to-list price ratio means that you have a higher chance to find favorable terms in Iowa's real estate market.
If You're a Seller: The 96.7% sale-to-list price ratio means that while homes are still selling close to their list prices, buyers have considerable negotiation power. The decrease in above-list sales suggests less urgency from buyers. For your part, you should adjust your price strategy to meet market expectations. This will help you attract potential buyers and reduce the chance of price drops.

Is it a Buyer's or Seller's Market in Iowa?

Strong
Buyer

Buyer

Balanced

Seller

Strong
Seller

Buyer’s Market

Seller’s Market

Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.

Is it a Buyer's or Seller's Market in Iowa?

The 2.2% price increase in Iowa and the 9.1% increase in the number of homes sold points to slowing demand. With 54 days on market, up by 6 days YoY, Iowa homes are starting to take longer to sell. This gives buyers more time for decision-making. These are some of the factors that suggest Iowa's shift toward a buyer's market.

The 21.1% increase in housing supply suggests more homes are available on the market, which further tilts the scale towards buyers. Additionally, the 25.5% of homes with price drops and a 96.7% sale-to-list price ratio (down from this time last year) point to a cooling market where sellers may need to adjust their prices. Only 16.9% of homes are selling above list price, a number that has dropped since last year. The increase in price reductions suggests that buyers have more negotiating power in the current housing market in Iowa.

Iowa Housing Market Insights

The housing market in Iowa is more favorable to buyers than the national market. Home prices have risen by only 2.2% year over year, bringing Iowa's median price to $226,900 — much lower than the national median of $418,284. Iowa's inventory has grown, with 11,112 homes listed for sale, a 21.1% increase from last year. Homes now stay on the market for an average of 54 days, up 6 days from last year. This gives buyers more inventory options and opportunities to negotiate.

Despite this, the housing market in Iowa also has some characteristics of a seller's market. The 4-month supply period indicates steady demand and competition. The 9.1% increase in the number of homes sold also reflects this demand. But overall, Iowa's market is a balanced one. Even though competition persists, the increase in price drops indicates that buyers have more space to negotiate. If you're buying an Iowa home, consider market trends and plan for additional costs, such as closing fees and home inspections.

Nationwide Migration Trends

Iowa ranks 32nd on the list of most populous states. The Hawkeye State gained almost 20,000 people as a result of international migration in 2024. However, the state has also experienced considerable outbound migration due to a lack of job opportunities. In fact, Iowa is one of the states with the highest brain drain in the US.

The living cost in Iowa is 89.7%, which is 10.3% lower than the national average. But its harsh winters and limited amenities are two major reasons why people move out of Iowa.

Frequently Asked Questions

How is the housing market in Iowa?

The Iowa housing market is currently balanced, with slow growth in home prices and a rapid spike in inventory. Prices rose 2.2% YoY in January 2025, to a median of $226,900. Sales also increased by 9.1%, indicating a steady demand. Meanwhile, the number of homes for sale is up by 21.1%, which means more options for buyers. Homes now spend an average of 54 days on the market.

What are the cheapest cities in Iowa?

If you're moving from more expensive states like New York or California, you will pay significantly less to rent or buy homes in Iowa. Cities like Oelwein (66.25K), Fort Madison ($73K), and Keokuk ($92K) are among the cheapest places to live in Iowa.

Should I wait for some time before buying a house in Iowa?

As a buyer, you can benefit from the growing inventory in Iowa. The number of homes for sale has risen by 21.1% which means more options for you. If you're buying a house in Iowa, you should get a mortgage pre-approval and budget for a down payment of up to 10%.

How can I list my home for sale in Iowa?

You can list your home for sale with a Flat Fee MLS Iowa listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀

What is the average cost of living in Iowa?

The cost of living index of Iowa is 89.7, that is 10.3% lower than the national average. Housing costs are especially affordable, with the median home price at $226,900. You can find out more with our free Iowa cost of living calculator.

How does the Iowa housing market compare to the national market?

Iowa's housing market is slower than the US average. Homes for sale in Iowa spend 54 days on the market, just under the US median. Iowa's median home sale price is $226,900, nearly 46% lower than the national average. The housing demand in IA is also reducing due to rising inventory and population relocation to other states.

Is now a good time to sell or buy homes in Iowa?

The Iowa housing market is currently a balanced one. Sellers can benefit from the rising home prices and reduced months of supply. However, if mortgage rates remain stable with more than 6 months of supply, it will be the best time to buy a house in Iowa.

What is the average mortgage rate for buyers in Iowa?

The average mortgage rate for buyers in the Iowa housing market fluctuates between 6.13% and 6.79%. Before applying for a mortgage, be sure to check your credit score and review the current mortgage rates with lenders.

When will the Iowa state housing prices drop?

As per Iowa housing market predictions for 2025, house prices are likely to drop in the near future. Although Iowa house prices have risen in January, the inventory has increased by 21.1%, which could lead to potential price drops.

What are the Iowa housing market predictions for 2025?

The Iowa housing market is expected to tilt fully towards buyers in the coming months. While the market is currently balanced, buyers still benefit from the extended number of days on market, increasing housing inventory, and more homes selling with price drops.