Iowa Housing Market Holds Steady as Winter Slowdown Sets In

WEST DES MOINES — Iowa’s housing market remained steady in December, showing signs of a typical seasonal slowdown while maintaining healthy inventory levels and year-over-year gains, according to the Iowa REALTORS® December housing report.

New listings continued to outperform previous years, rising 4.6% to 2,064 homes compared to December 2024. However, the winter market began to take shape, with new listings falling 31.9% from November.

Active inventory also saw year-over-year growth, increasing 12.7% to 8,490 single-family homes on the market. Month-over-month, inventory declined 11.2% as colder weather and holiday schedules slowed activity.

Closed sales reflected overall market stability. December recorded 2,842 home sales, an 8.1% increase from a year ago and slightly higher than November’s total. Pending sales, however, declined both monthly and annually, with 1,890 transactions, down 28.1% from November and 1.7% from December 2024.

Median home prices continued to rise at a moderate pace, increasing 4.3% year-over-year to $240,000. Prices dipped slightly from November, declining 0.9%. Homes also took longer to sell, with the median days on market increasing to 39 days, up from 34 days a year ago and 27 days in November.

“November and December reflected very typical seasonal movement, but the bigger picture remains encouraging,” said Travis Bushaw, 2025 Iowa REALTORS® president. “Inventory levels are holding at pre-2020 ranges, prices continue to grow at a sustainable pace, and year-over-year gains in closed sales signal that the market is stabilizing.”

Bushaw said those trends position Iowa’s housing market for a stronger start to 2026 compared to early 2025.

Condo and Townhome Market

The condo and townhome segment showed stronger seasonal sensitivity in December.

New listings dropped 19.3% year-over-year to 263 properties and declined 35.5% from November. Despite fewer new listings, active inventory increased slightly to 1,644 units, up 1% from last year but down 12.6% from November.

Closed sales fell 5.2% from a year ago to 309 transactions, though sales increased 10% from November. Pending sales declined 6.1% year-over-year and 27% month-over-month.

Median days on market rose to 54 days, up from 41 days a year ago and 37 days in November. Median sales prices declined 5.6% year-over-year and monthly to $222,990.

“Seasonal shifts in pending sales and days on market are expected this time of year, especially in the condo and townhome segment,” said Les Sulgrove, Iowa REALTORS® statewide housing analyst. “What’s important is that long-term trends remain steady, with inventory availability improving and pricing adjustments creating a healthier balance between buyers and sellers as we head into the new year.”