Des Moines Housing Market Update: 2022

How was Real Estate in 2022 in Des Moines? 

It has been such a rollercoaster ride in the Des Moines real estate market in the past few years. If you need a reminder, check our updates here: 2021 Update

However, if you’re watching the news at all, you might think the real estate market has turned into a legitimate dumpster fire. It hasn’t! 

 This year, we wanted to review what happened in 2022 home sales, and to bring the numbers into context, we included 2019 – 2021 in our annual graph. What we’re seeing is that the annual number of homes sold in 2022 is much more normal. It is tracking to pre-pandemic levels in 2019. So, don’t panic!

Some notable changes

  • With the interest rates doubling since early 2022, sales have definitely slowed down. Houses are staying on the market a bit longer, and price improvements have come back into fashion. 
  • We still have low inventory, especially at the lower-end price points. This isn’t leading to bidding wars, though, as buyers are being pickier before writing offers. 
  • Prices have gone up significantly in the past few years. This is due to both the hot market we were in and the cost of new construction. 

As you can see in the chart below, though our number of homes sold is trending towards 2019 numbers, the price points at which homes are selling are still higher. Frankly, I don’t see price points dropping back into 2019 levels. We will see a slight correction in the next few months. 

And now for the actual data:

The chart below shows where we have been in 2022. As always, whether we have a seller’s market (less than three months of inventory available), a balanced market (three to six months of inventory available), or a buyer’s market (more than six months of inventory available) varies widely based on the price point.  You can see the seller’s marketbalanced market, and buyer’s market price points below. 

Considering Buying?

If you’re considering buying a home in the next couple of years… here’s what you need to know:

  • Rates may continue to rise in 2023 before stabilizing late in the year or in 2024. What this means: home prices may stabilize, or at least not grow as fast, but with a higher rate, your maximum price will probably come down.
  • You’ll have more time to make a decision on the right house. Whew!
  • If you’re panicking over your interest rate: just remember to buy the right house for YOU, and plan to refinance when rates come down. 

And if this describes you, and you decide to jump in… be prepared. Meet with the REALTOR® of your choice (preferably us, of course!). If you need help knowing what to look for in a great REALTOR®, you can check this blog post.  

Considering Selling?

You will need to do some additional work to prepare your house for sale than you might have had to do last year. In addition, you’ll want to price your home realistically. Again, meet with the REALTOR® of your choice (hey, we’re here!), and get moving. We would love to have more options for our buyers.

Not Moving? 

So, you already love where you live? That’s awesome because moving is a pain. Right? Just make sure to continue to maintain your home. 

The Bottom Line  

Considering a move in 2023? If you have a REALTOR®, that’s great.  If you don’t, the Home Sweet Des Moines team (brokered by Realty ONE Group) is ready to help. Contact us! We’d love to help.  

And even if you’re not moving, feel free to say hi. We love all our clients, past, present, and future. Cheers to 2023! Make it your best year yet!

Licensed in the state of Iowa. Home Sweet Des Moines - Realty ONE Group Impact

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