We’re now in the second half of July, and the market is showing clear signs of change. This year has been unpredictable, with some areas cooling off while others remain active. In some places, it feels more like a buyer’s market, but that depends heavily on price point and location. Here’s everything you need to know about our market and what it could mean for your next move:
Medial sale price drops. While buyer activity has remained strong in recent weeks, the median sale price has dropped from $365,000 to around $350,000. Days on market have also increased. This combination points to a gradual lean toward a buyer’s market. However, this varies greatly depending on price point and location.
Active listings. There are currently 4,130 active listings in the MLS, including 1,332 new construction homes, which make up 32% of all active listings. There are 2,037 pending sales, 452 of which are new construction, representing 22% of that total. A total of 7,336 homes have sold so far this year, including 1,393 new construction homes, or 18% of all closed sales. This puts 2025 about 200 units ahead of 2024 at this point. Sales volumes for the third quarter of 2023 and 2024 were nearly identical, within just 25 homes of each other.
“Buyer demand and market timing continue to vary by location and price point.”
What’s next for interest rates? Interest rates have been unpredictable this year. We’ve seen a mix of increases, decreases, and plateaus. Economic news continues to play a major role, especially with developments around tariffs and public disagreements between the Trump administration and the Federal Reserve. Fed Chair Powell has recently indicated that rate cuts could still happen later this year, but rising inflation may slow that timeline.
There is still uncertainty around future policy decisions, and it’s not yet clear how they will affect the market short term. However, by 2026, we expect more clarity on both economic direction and housing policy.
Prices have come down slightly, and interest rates may improve later this year, making it a good time to buy. While demand could slow heading into fall, any drop in rates may bring buyers back quickly. Market activity will ultimately depend on location, inventory, and how financing conditions evolve.
If you have any questions about the market or need guidance, just reach out. You can call me at 515-681-5677 or send an email to timothyschutteteam@solddesmoines.com. I’m always here to help.