The number of homes on the market in the Des Moines metro area rose again, to 26.4% over this same time last year, reported the Des Moines Area Association of REALTORS® (DMAAR). 2,880 properties were on the market in September compared to 2,669 properties in August. In September of 2021, there were 2,279 properties on the market.

Home sales dropped in September by 10.8% compared to September of last year. 1,302 residential properties sold in September 2022 while 1,459 homes sold in September of 2021.

The median sale price rose by 3.8% when compared to September of 2021. $275,000 was the median sale price in September 2022. The average days on market calculated to 34 days.

My take: More homes are coming onto the market in every price range. This is great for buyers who have felt rushed to make a decision, who didn’t want to get into bidding wars and/or give up concessions just to be the winning bid. The market is slowing down just enough to give these buyers the time they need.

Even though existing homes are still in a seller’s market with between 1 and 1.5 months of inventory, I do see we are moving toward a more balanced market. Especially with new construction. New construction is in a buyer’s market with about 8 months of inventory. Results of this, atypical incentives from builder’s and price reductions.

Economists are saying they expect the Fed to keep interest rates a little higher for 2023, then begin a gradual decrease in 2024 as the economy levels out.

Historically-speaking, owning real estate has proven to be a safe long-term investment. This remains true. People continue to buy and sell homes in whatever kind of market we find ourselves in, taking advantage of opportunities with new construction right now, and financing programs that lessen the pain of higher interest rates.