More Homes for Sale—But for Who?

As we head into the second half of 2025, the Central Iowa real estate market is sending a clear message: price matters more than ever. Based on the latest Week 27 data, our market isn’t moving at one speed—it’s split, and where your home falls on the price spectrum can dramatically change your strategy.

Whether you're buying or selling, here’s what the current numbers are telling us.

🔥 Below $400K: Still a Seller’s Market

Homes priced under $400,000 remain the strongest and fastest-moving segment of the market.

According to new inventory data, nearly 50% of all active listings in the Des Moines metro fall between $200,000 and $400,000. And buyers are showing up—homes in this range are flying off the market.

The most telling stat? Months of Inventory (MOI)—a metric that shows how long it would take to sell current inventory at the current pace. For June 2025:

• $100K–$200K: 2.3 months
• $200K–$300K: 2.5 months
• $300K–$400K: 3.2 months

All of these are well below the 4-month mark that defines a seller’s market.

Takeaway: If you're listing a home under $400K—especially in places like Norwalk, Indianola, or Ankeny—you’re likely to see steady activity and solid offers. Buyers, meanwhile, should expect competition and limited room to negotiate.

❄️ $500K and Up: The Market Cools

As prices rise, so does supply—and buyer activity starts to thin out. Homes between $500K and $800K are now sitting in buyer’s market territory, with MOI ranging from 6.1 to 8.4 months.

Luxury homes are faring even worse:

• $800K–$900K: 15.0 months
• $1M+: 16.2 months

In other words, at current demand levels, it would take well over a year to sell the existing supply of $1M+ homes in the Des Moines metro.

What does this mean?

• Buyers in these higher ranges can take their time, negotiate price, and ask for concessions.
• Sellers need to be realistic about pricing and days on market—or risk going stale.

Interestingly, the $900K–$1M range bucks the trend slightly, landing at a balanced 5.1 months of inventory. This could indicate niche demand, but time will tell if that balance holds.

🏠 Inventory Levels Are High, But Not Alarming

Metro-wide, active listings have reached over 4,000 homes for the first time in 5.5 years. But that’s not a signal of market collapse—it’s a return to a more balanced market.

• The entry-level inventory is still tight (especially under $200K, which has just 147 homes).
• The mid-tier is healthy and active, particularly $200K–$400K.
• The upper-end has oversupply, which means opportunity for patient buyers and a need for strategy among sellers.

💡 What This Means for You

If you’re selling under $400K, the market is still in your favor—but don’t expect the bidding wars of 2021. Preparation and smart pricing still matter.

If you’re in the move-up or luxury market, pricing, marketing, and negotiation strategy are everything. You may be competing with several similar listings.

Buyers at every level now have more options and, in many price points, more leverage. Don’t wait for the “perfect” moment—good homes are still moving fast in desirable areas.

Ready to Make a Move?

As always, the market is local—and personal. If you’re wondering how these numbers affect your next step, I’m happy to help you interpret the data and make the right move for your situation.

Let’s have a no-pressure conversation about what’s next for you.

All data provided by the Des Moines Area Association of REALTORS® and charts provided by Les Sulgrove at Simply Des Moines.

As a Broker Associate/REALTOR® at EXIT Realty and Associates, I specialize in buying and selling real estate throughout Central Iowa, including Norwalk, Des Moines, West Des Moines, Cumming, Indianola, Carlisle, Waukee, Urbandale, Grimes, Clive, Johnston, Ankeny, Altoona, and Pleasant Hill. I proudly serve Warren, Polk, Dallas, and Madison Counties.

💬 Get honest, straightforward real estate insight from someone who knows Central Iowa.

Call me, Jon Niemeyer, at 515-490-4675 — no pressure, just perspective.