The Iowa housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 1.2% year-over-year, settling at $227,500. In contrast, the Median List Price has seen a modest increase of 1.5%, reaching $242,700. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic conditions.

Price Per Square Foot metrics indicate a stronger performance, with the median Price Per Square Foot rising by 4.5% to $154. Similarly, the Median List Price per square foot has increased by 2.0%, now at $162. These figures suggest that while overall sales prices have dipped, the value attributed to property size remains robust.

Sales activity has been notably vigorous, with Homes Sold increasing by 7.2% year-over-year to 2,083 units. Pending Sales have also risen by 6.1%, totaling 2,696. This uptick in sales activity is supported by a significant 26.9% increase in New Listings, which now stand at 2,867. The inventory has expanded by 19.1%, reaching 7,728 homes, contributing to a 40.0% increase in Months of Supply, now at 3.7 months. This expanded inventory and supply suggest a shift towards a more balanced market, potentially easing pressure on buyers.

The Median Days on Market have increased by 5.0% to 53 days, indicating that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio has seen a slight decline of 0.2%, now at 96.6%, while the sold above list ratio has decreased by 1.4% to 16.0%. These metrics reflect a market where negotiation is becoming more prevalent, and sellers may need to adjust expectations.

Price Drops have become more common, with a 6.4% increase, now affecting 26.0% of listings. This trend suggests that sellers are increasingly willing to adjust prices to meet market demand. Conversely, the percentage of homes going off-market in two weeks has slightly decreased by 0.5%, now at 29.0%, indicating a slight slowdown in the speed of transactions.

Overall, the Iowa housing market in January 2025 is characterized by increased activity and inventory, with a slight cooling in price growth. Buyers may find more opportunities with the expanded inventory, while sellers may need to be more flexible in pricing strategies to align with market conditions.