The year 2024 was another intriguing one for the real estate market, but for new reasons. Highlights included mortgage interest rates that were expected to improve significantly—but didn’t—and a class-action lawsuit against the National Association of REALTORS®. This lawsuit was settled with financial payouts and rule changes that disrupted how many REALTORS® had done business for over a century, causing temporary chaos.
Despite these challenges, people still bought and sold homes. Drawing on data from the Des Moines Area Association of REALTORS®, which represents Dallas, Jasper, Madison, Marion, Polk, and Warren counties, and insights from my friend Les Sulgrove at Simply Des Moines Market Values, here are some fascinating statistics from 2024.
Number of Homes for Sale
In 2024, the weekly number of homes for sale consistently outpaced 2023, providing good news for buyers. They had more options and a little extra time to make decisions. As REALTORS®, we hoped to see the inventory exceed 4,000 homes in a single week, but the high point of 3,972 homes in week 43 came close.
Months of Inventory
Another way to measure the market is through Months of Inventory, which calculates how long it would take to sell all current listings at the current pace of sales.
In 2024, the market remained a seller’s market for 38 weeks and a balanced market for 14 weeks. However, inventory began increasing steadily after week 14, and as we head into 2025, the market has entered buyer’s territory with 6.1 months of inventory. Now is a great time to buy!
Price Reductions per Week
On average, there were 281 price reductions per week in 2024, with a low of 94 in week 3 and a high of 487 in week 39. Altogether, there were 14,600 price reductions throughout the year! On the flip side, there were 1,128 price increases, proving that not all listings are priced to drop.
Annual Closed Sales
The year closed with 13,226 sales, just 17 fewer than 2023. However, this figure was far from the 2021 record of 17,494 sales. The last time annual sales were as low as the past two years was in 2015.
Monthly New Listings and Accepted Offers
Sales were strong during the first seven months of 2024, with more accepted offers than new listings each month. However, the last five months reversed that trend, with more listings than accepted offers. As a result, the year ended on a somewhat lackluster note in this category.
Interest Rates
The real estate community widely agrees that if 30-year mortgage rates drop below 6%, buyer activity will surge. Weekly interest rates started the year at 6.6%, peaked at 7.22% in week 18, and reached a low of 6.08% in week 39. Unfortunately, rates climbed back to nearly 7% by year-end. Here's hoping for better rates in 2025!
Back on the Market
Occasionally, properties under contract fall through and are relisted. In 2024, 24% of accepted offers failed, a perfectly normal rate that’s consistent with prior years.
Predictions
Predicting interest rates is a gamble, and I won’t pretend to know what 2025 holds. However, if rates drop below 6%, I’m confident we’ll see a spike in sales.
You might wonder: “If sales increase, won’t inventory shrink and lead us back to a seller’s market?” That’s a valid point, but it’s important to remember that most buyers are also sellers.
Currently, many homeowners are hesitant to sell because they’re locked into favorable interest rates on existing mortgages. Moving to a new home would mean taking on a higher rate—sometimes double their current one. This has kept the number of existing home listings low, pushing many buyers toward new construction.
If mortgage rates fall below 6%, more homeowners will likely list their homes and move into properties better suited to their needs. In my view, that scenario could create a healthy and sustainable real estate market.
Happy New Year!
Norwalk IA Real Estate – Jon Niemeyer, Broker/Owner/REALTOR® at EXIT Realty North Star. I list and sell real estate in Central Iowa including Norwalk, Des Moines, West Des Moines, Cumming, Indianola, Carlisle, Waukee, Urbandale, Grimes, Clive, Johnston, Ankeny, Altoona, and Pleasant Hill in the Counties of Warren, Polk, Dallas, and Madison. Call Jon Niemeyer at 515-490-4675.
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