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The market is trending toward more normalization, but robust activity is continuing.
The Ames real estate market introduced 96 new listings in May. That was the most new listings since May of 2020. Because so many homes were introduced, it increased the active listings from 58 to 75. That was the largest increase of active listings since June of 2019 when it increased by 24. Those are encouraging signs for a more normalized market since we’ve been facing a shortage since the pandemic started.
This normalization has been aided by the interest rate increases we’ve seen in the first half of this year. In the month of May, interest rates stayed mostly steady and buyers took advantage, scooping up houses at a rapid pace. The median days on market was just five days — that’s the fewest number of days homes have lasted since last May. In a completely normalized market, the median days on market is just over a month with the average over two months.
Because of the competition that still remains for houses, home prices are still appreciating even with rising rates. Both median list price and median sale price are steadily increasing.
The summer season usually brings an uptick of real estate activity. The number of active listings is rising by the day and the Ames market is poised to have another lively summer especially with houses moving quickly. Reach out to your Friedrich Realty agent to help guide you the way home!
