Nov 14, 2022 - News

Buying a house in Des Moines is finally easier, but not cheaper

Data: Freddie Mac; Chart: Madison Dong/Axios Visuals

Des Moines' real estate market is starting to level off, according to the latest data from Redfin/MLS.

Why it matters: After two-plus years of plummeting inventory and sky-high home prices, metro-area buyers have waited a long time for a little relief.

What's happening: Mortgage rates started to surge in May and have since passed 6%, squeezing homebuyer budgets.

By the numbers: Inventory is up 6.4% and pending sales are down 33.4% since May.

  • Median home sales prices fell from $276,000 to $275,000 from May to September.
  • Sellers are increasingly dropping their asking price. Close to 36% of listings had price cuts in September, up from 26.1% in May.

Meanwhile, a shrinking share of homes sold above list price. In September 32.5% of homes sold above list price, down from 46.1% in May.

  • Homes are now sitting on the market more than twice as long. In May homes sold in seven days on average, compared with 15 days in September.

Yes, but: Monthly mortgage payments are significantly more expensive than they were a year ago.

The bottom line: Des Moines' market is calmer, but buying a home right now isn't necessarily cheaper.

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