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Our housing market in 2023 saw lower inventory, higher interest rates, fewer sales and more days on the market. Those aren’t exactly the statistics you want to see in our real estate market, yet it was the reality for many housing markets across the country in 2023.
The Des Moines metro housing market saw 13,136 homes sold in 2023, which is a decrease of 16% from the 15,605 homes sold in 2022.
The median sales price climbed $25,000 in the last year to $295,000 for 2023.
Homes averaged 72 days on the market in 2023, which is 20 more days on average than 2022.
In all, the total volume of homes sold was down more than $564 million in the last year. In 2022, our sales volume totaled $4.7 billion, in 2023 that total sales volume fell to $4.1 billion.
However, as we close the door on 2023, I believe there are rays of hope for a more better housing market in 2024. For one, the interest rates have begun to lower a bit and leading economists are predicting a gradual decline in 2024. Two, new construction continues to be a strong presence in our market adding new homes and developing new neighborhoods. And three, there are a ton of new, exciting businesses and companies coming to the Des Moines area which will further spur economic growth.
West Des Moines has Top Golf and Blue Zoo Aquarium and the proposed $600 million-dollar Grand Experience which is to be a 226-acre entertainment district.
We’ve got the Des Moines International Airport building its $445 million dollar terminal.
Downtown’s Iowa telehealth Open Loop plans a massive downtown Des Moines expansion. And there is still talk of the $95 million professional soccer stadium with our own team!
Altoona has Meta which when additions are complete, it will be the largest data center in the world. The city has its first car dealership, Honda, and there are tons of industrial development slated for 2024.
These are just a few of the impressive projects happening in our Des Moines area. And all of this growth creates jobs and people moving to Des Moines for these jobs which ultimately drives our housing market. So that is why I believe the housing market will see more growth in 2024!