DES MOINES, Iowa — If the American Dream is defined as home ownership, that goal will likely be a challenge for Iowans this year.
The Iowa Association of Realtors reports home prices are rising, including interest rates, but the supply of homes for sale is extremely low.
According to its most recent report, the average sales price for a home in Iowa is $223,855, a seven percent increase from this time last year. However, there were fewer than 6,000 homes on the market, which is a thirteen percent drop from last year.
Des Moines-based realtor Sara Hopkins said the market is making buyers more aggressive in their search.
“They’re very hungry to get out there and get into a new home, but we don’t have a lot of sellers who are ready to put their home on the market,” Hopkins said. “We’ve got a really tough supply and demand situation right now, and that’s what is driving up home prices.”
Hopkins added that she does not believe the current conditions are leading towards a possible housing bubble burst.
“Real estate has a 10 to 15 year cycle that it goes through,” Hopkins said. “I don’t think this is cause for concern that we’re coming into a housing bubble in any means, but it definitely is reflective of the craziness buyers are experiencing right now when there are none for sale.”