Des Moines, IA Housing Market Report

The Des Moines real estate market is currently transitioning into a more balanced environment, characterized by a significant increase in inventory and a slower pace of sales. As of December 2025, active listings have surged by nearly 16% year-over-year, reaching 2,949 units. This influx of supply, coupled with an average of 78 days on market—a 13-day increase from the previous year—suggests that the frantic bidding wars of the past have subsided. While the sale-to-list ratio remains high at 0.99, indicating that sellers are still achieving near-asking prices, the increased time it takes to close a deal gives buyers more leverage during inspections and negotiations.

Price trends in the Des Moines-West Des Moines metro area show a pattern of slow, steady appreciation rather than volatile swings. The median home value has reached $203,387, representing a modest 1.07% annual increase. Over the last six months of 2025, prices have climbed incrementally every month, moving from $202,152 in July to the current December high. This consistent upward trajectory, despite higher inventory levels, reflects the enduring demand for affordable housing in the region and a resilient local economy that supports steady homeownership growth.

Looking ahead, the Des Moines market offers a compelling narrative for both investors and traditional buyers. The rental market remains robust, with median rents rising by 2.86% year-over-year to $1,145, outpacing the growth of home values. For sellers, the key to success in 2026 will be realistic pricing and patience, as the extended days on market require a more strategic approach to marketing. For buyers, the current climate presents a window of opportunity to explore a wider selection of homes without the immediate pressure of immediate sell-outs, though they should act decisively on well-priced properties given the persistent monthly price appreciation.